SMART GIVING

CHARITABLE FINANCIAL PLANNING

AGENDA

• Why give charitable donations

• Smart giving

• What to give – Appreciated Assets

• Controlling the when to give (Donor Advised Fund)

• Charitable Remainder Trust

• Wealth Replacement Trust

• Another use of Insurance

• Charitable Gift Annuity

• Using an IRA

• A Project in Review - Palace of Gold

• Inspiration to Share - Bring it home

B O O K S , E D U C AT I O N , P R A S A D A M , D E I T I E S & T E M P L E S

WHY WE GIVE CHARITABLE DONATIONS

A R E F L E C T I O N O F O U R VA L U E S

SMART GIVING

APPRECIATED ASSETS

• Stocks (held over one year)

• Bonds

• Real Property

• Closely held business

• Tangible Personal Property

Why

Tax savings allows more giving

EXAMPLE

You purchased 100 shares Apple stock at $50.00 per share

At a value of $5,000

AAPL Hits $550.00 per share

That is a vale of $55,000

EXAMPLE

• Option 1 – You sell the stock and pay capital gains tax of $7,500

(Currently 15%) This leaves you with $48,500 to donate to donate

and right off on your taxes

You wish to donate the $55,000 to a book distribution program

and other projects

• Option 2 – You set up a Donor Advised Fund through VCF and

your Financial Advisor. You transfer the Apple Stock to your DAF

sell it when you want and donate all $55,000 to book distribution

and other programs. You pay no capital gains tax and can write

off the entire $55,000

WHAT IS A DONOR ADVISED FUNDS

• Setup through a Community Foundation

• Examples

• Vedic Community Foundation

• Minimum opening $10,000

• Transfer Appreciated Assets

• Assets can continue to grow

• Donor (you) advises when and where to distribute

• 100% tax deduction on Appreciated Assets

• Takes assets out of your estate

• Low cost for maintence

Your

investment

account

At Merrill

Lynch

HOW IT WORKS

Your DAF

With VCF

At Merrill

Lynch

Your Assets

Transfers to

your DAF

With VCF

At Merrill

Lynch

Donations

Distributed

When &

where you

say

Tax deduction is given

at full appreciated

price of assets when

transferred

CHARITABLE REMAINDER TRUST

• Provides tax deduction of contributed assets

• Deduction can carry over for 5 years

• Donation is irrevocable

• Donor receives an income stream 5% up to 50%

• Income stream continues for life time

• Income beneficiaries can not change

• Moves assets out of one’s estate

• The CRT pays no taxes on its earning passed through

• The Trust funds are transferred to Charity at death

WEALTH REPLACEMENT TRUST

• How to satisfy the family

• Irrevocable Life Insurance Trust (ILIT)

• Policy is not owned by the Insured person

• Consequently, not subject to Estate Tax

• The Insurance policy is used to replace contributions to

CRT or a Donor Advised Fund

• Proceeds from the Policy are not taxable

ANOTHER USE OF INSURANCE

• Establish a policy with the Charity as beneficiary

• Policy premiums can be paid by the Charity through

donations from the insured

• Policy is outside of Donors Estate

• Can use either Term, Universal & Variable Life Policy

CHARITABLE GIFT ANNUITY

• Provides tax deduction to the giver on appreciated

assets

• Provides a guaranteed income stream to donor

• Income stream is determined by age & amount

• Donor can defer income until retirement

USING THE IRA

• This option expired December 31, 2013 (Under review

by Congress to continue for 2014)

• Provides for $1 for $1 deductions from your IRA

• You must be 701/2 when the gift is transferred

• Gifts cannot exceed $100,000 per year per person

• Gifts must be made directly from IRA to 501c3

• Also satisfies Required Minimum Distribution

• It may be reestablished for 2014 by Congress

LET’S LOOK AT A PROJECT

• It should have a Financial Goal and timeline

• Promotes Vedic Culture, Science or Philosophy

• It must be a 501c3 or attached to a nonprofit entity

• Int. projects must receive funds through a US 501c3 for tax

credit

• Funds must be utilized as promoted

• Annual and as needed financial review from VCF

• Is the project VCF Certified?

SRILA PRABHUPADA’S PALACE

The Right Project at the Right Time

PAST, PRESENT, FUTURE

• The Plans for the Palace began in 1972

• Completed in 1979 after Srila Prabhupada departed

• Became a top tourist attraction in West Virginia

• 50,000 visitors a year

• 2011 a five year $7 million dollar restoration began

• Fully restored, it will become a Int. pilgrimage destination

• The Palace can be cash flow positive in 2017

TIMELINE

PROJECT BENEFITS

• Educates the Public about Vedic Culture

• Facilitates distribution of Sacred Vedic Literatures

• Pays homage to a Pure Ambassador of Vedic Traditions

• Brings honest pride to those of Vedic Cultural Heritage

NEXT STEPS

• Establish Your Families Financial Plan

• Set Your Retirement Goals

• Discuss and review your Estate Plan

• Establish Your Charitable Financial Vehicle

• Bring this seminar to your Friends and Community

• For more information contact us at: kgd@vedic-cf.org

CONCLUSION

Chant Hare Krishna and be Happy

Smart Devotees Finish Rich