Archive for May, 2008
Charitable Trust Formation
LONDON–(Marketwire – November 16, 2009) – A.T. Kearney announced today that it has been selected by the Carbon Disclosure Project (CDP) to analyze and write the “CDP Supply Chain Report 2010.” This is the second annual CDP Supply Chain Report.
The CDP has surveyed hundreds of key suppliers to its member companies. The objectives of the Supply Chain Report are to raise awareness of the importance of supplier community carbon disclosure as well as to provide CDP member companies with actionable strategies for the successful implementation of a low-carbon supply chain.
Frances Way, head of supply chain for the CDP, said, “We selected A.T. Kearney to execute the ‘CDP Supply Chain Report 2010,’ because of its leadership position in both supply chain and sustainability. A.T. Kearney’s expert analysis for the 2010 Supply Chain Report will provide tangible insights for our members.”
The CDP Supply Chain Report is the first initiative to bring together the huge purchasing power of global corporations to provide a standard reporting model for suppliers to advance carbon disclosure in the supply chain.
Daniel Mahler, A.T. Kearney partner and global sustainability practice leader, said, “A.T. Kearney is pleased to be working with the CDP on the ‘Supply Chain Report 2010.’ The CDP is the preeminent global organization focused on the management of carbon emissions. It is critical that major corporations address the carbon output generated by their global supply chains. We believe the ‘Supply Chain Report 2010′ will raise awareness of this critical issue with suppliers as well as provide CDP member companies with the tools they need to manage the carbon footprint of their supply base.”
About the Carbon Disclosure Project
The Carbon Disclosure Project (CDP) is an independent not-for-profit organization holding the largest database of corporate climate change information in the world. CDP gathers data through its annual Information Requests on behalf of 475 institutional investors with a combined asset base of $55 trillion, purchasing organizations and government bodies. Since its formation in 2000, CDP has become the gold standard for carbon disclosure methodology and process, providing primary climate change data to the global market place.
CDP Supply Chain was formed in 2007 and is a collaboration of global corporations who have extended their climate change strategies beyond their direct corporate boundaries and are engaging with their suppliers via CDP’s annual Information Request.
More than 2,000 major corporations around the globe report their greenhouse gas emissions and the risks and opportunities posed by climate change through CDP.
The Carbon Disclosure Project is a Registered Charity (no. 1122330). In the United States, CDP’s sponsor liaison is Rockefeller Philanthropy Advisors, which provides CDP with 501(c) 3 charitable status.
About A.T. Kearney
A.T. Kearney is a global management consulting firm that uses strategic insight, tailored solutions and a collaborative working style to help clients achieve sustainable results. Since 1926, we have been trusted advisors on CEO-agenda issues to the world’s leading corporations across all major industries. A.T. Kearney’s offices are located in major business centers in 36 countries. For more information, please visit www.atkearney.com.
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Mo George and Dax interview for single Broken
Salvation Army Donations Pickup
If you want to help your favorite charity, but are not sure how to do so, there are a number of creative donation options available through most major organizations. Whether it’s a donation of time, money or objects, most charities are in big need of any assistance they can get. Even old cars, boats and trailers can translate into cash in the charity’s hands, and a tax deduction for you.
The number of charities that accept donations of cars, boats and RVs are many and include such notables as the American Diabetes Association, Salvation Army and more. Here are a few things you need to know before donating cars or boats to nonprofits:
* Condition. Some agencies only accept vehicles in fully workable condition or close to it. Others will take push, pull or drag models. It all depends on the agency and what they intend the use for. Oftentimes, those agencies that accept push and pull models intend to rehab and sell them or just outright sell them to make money for their charitable operations.
* Transportation. Some agencies will arrange for pickups, others will not. If your donation isn’t operable, you’ll want to know this information.
* Tax deductions. Donations to certified nonprofits will, or should, result in tax deduction statements. It’s a good idea to have a basic understanding of the vehicle’s value and get the donation statement. This can result in a big tax deduction at the end of the year.
* Designated use. Some agencies will allow you to designate what program or programs you’d like to benefit from your gift. If this is the case with the agency you’re intending to donate to, explore their programs and make the choice.
So why do nonprofits need cars, trucks, boats and RVs? The answer to that depends on the agency. There are three main reasons why nonprofits accept these items as donations:
* Resale. Some agencies simply clean up and resell the donations to help them bankroll their charity efforts. At auction, cars, trucks, boats and more can bring them sizeable amounts that really assist in their efforts.
* Agency reuse. Depending on the quality of the vehicles donated, the agency itself might be able to use them for its own fleet. Nonprofits that help elderly people get to their medical appointments or deliver food, for example, can benefit from having solid, workable cars donated to assist them in this mission. It costs a lot for a nonprofit to buy cars, and when they’re donated, their operating funds can go on the things that really matter.
* Reuse for clients. Some agencies, especially those that help people get back on their feet, try to provide working vehicles for their clients. The outright donation of a workable car, for example, could end up in the hands of a single mother working to make ends meet. No strings attached, the car donation can help her get to work, take care of her kids and more.
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Scouting For Food
Charitable Giving Tax Service
Question: How about forming a new charitable tax deductible organization, “People Helping People”?
Here’s how it would work. This would be a non profit organization. There would be a “bank”, a Charitible Trust established. Money and time and material could be donated, to anybody! Hours of time would be donated as well as money whose profits invested would be tax free. People donating hours would get credit for either due payment for services renderred (taxable wages)(1099Don), or tax deductible time spent helping people who asked for it(1099Don). Recipients would be whomever got helped. The governement would see recipience as a taxable event for those who got help that were not within a non taxable situation for a given year(1099Don). So that, if you received help and you were a millionaire, you got taxed on that charitible help. But if you were dirt poor and could not afford your expenses, your help was tax free!
What do you think?
Answer: You can NEVER deduct the value of your time as a charitable donation. That's explicitly barred by law.
Any 501(c)3 that assists millionaires would probably lose their status as a non-profit. That's not the target group for non-profit assistance.
BTW, there are already one or more charitable organizations using that name.
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Charitable Giving With Life Insurance
Survivorship life insurance is a life insurance policy that insures two people and pays at the second death. Also referred to as second-to-die life insurance, common abbreviations are SWL for survivor whole life and SUL for survivor universal life.
Since the insurance company does not have to pay until the second person dies, the premium is lower.
The insurance company could issue a standard policy, even if one person has health issues. In extreme cases where one person is entirely uninsurable, a policy with an acceptable premium is possible.
There are many uses for a survivorship life insurance policy. Let’s look at five.
Life insurance is the least expensive method of providing cash for the payment of estate taxes. Since 1981, the law allows one spouse to transfer all their property to the other spouse at death tax free. This is the “unlimited marital deduction.” If there is an estate tax due, it is not due until the second spouse dies.
In response, life insurance companies designed the survivorship life insurance contract. Since the premium is lower, it is even a better solution than a policy insuring only one person.
Replacing an Asset Given Away
Charitable remainder trusts (CRTs) allow a person to sell a highly appreciated asset (stock, land, a business etc.) without paying a capital gain tax, receive an income tax deduction and convert the asset to an income. At their death, the asset passes to the charity, not to their heirs.
An easy way to circumvent the children’s disinheritance is to insure mom and dad with a survivorship life insurance policy for the value of the asset given to charity. Sometimes premiums can be entirely paid from the income from the charitable remainder trust, which is often found money if the original asset was illiquid. The income tax deduction can be spread over six years if the asset contributed to the CRT is large enough. This is another premium source.
Even Out an Inheritance
A couple has three children and a family business. One of the children is active in the business and the other two have careers of their own. If the bulk of the estate is the business and the plan is to leave the business to the active child, the other two children come up short.
A second-to-die policy on mom and dad can even things out. For example, let’s say the total estate is 6 million and the business represents 4 million. If the parents leave the business to the active child and the remaining 2 million to the other two children and name these children the beneficiary of a 6 million dollar survivorship life policy, everything is equal.
The child active in the business gets the business worth 4 million. The other two children inherit 1 million apiece from the balance of the estate and 3 million apiece from the survivorship life insurance policy.
Post Phone a Buy Sell
If Joe and Bill were equal partners in a business, good planning would have them meet with their attorney and accountant, put a value on the business that each are happy with and have a buy-sell agreement drawn. Fund the agreement with life insurance and the funds are assured for the buy-out.
However, what if Joe’s wife, Ann, is also active in the business? If Joe dies, Ann would inherit Joe’s interest and continue to work in the business as usual. In this case, it would make sense to use a survivorship life insurance policy to insure both Joe and Ann. The buy-sell agreement would be worded to trigger the buy-out at the second of their deaths.
To Pay the Income Tax on an Inherited Qualified Plan
This is the day of mega 401(k) plans. When a 401(k), IRA or other qualified plan is passed, for example, to the children, income tax is required upon a distribution.
Most people do not realize the large potential tax on what may be their largest asset. Let’s look at the worst case. If the qualified plan money is subject to the top estate tax bracket, which is currently 45% and the child is also in the top income tax bracket, currently 35%, the amount left to the child is only a fraction of the total amount. Note there is a deduction against income for estate taxes paid. A good estimate of the net total percentage paid in taxes at the top brackets is 70%.
Use a survivorship life insurance policy to offset the income tax on the distributions, the estate tax or both.
There are many other uses of survivorship life insurance policies. If your situation includes any of these examples, I would recommend looking at the use of a second-to-die policy.
About the Author:
Robert D. Cavanaugh, CLU is a 36-year financial and estate planning veteran and author of the free newsletter, “The Estate Preservation Advisor”. For cutting-edge, easy-to-understand financial planning resources and techniques to increase your income, reduce taxes and preserve your estate, go to http://theestatepreservationadvisor.com/rd/subscribe.htm
Wealth Replacement Trust
Best Charities For Veterans
Question: Is anybody signing up for any charity rides this spring or summer?
I’m going on one tomorow which is called cycle for sight and the money goes to a campground for the blind as well as for returning veterans from Iraq. We will have plenty of food, plus 2 bands and a silent auction. During the summer we usually do one or two more for different causes. I love clycling which a large group of people, like 2,000 people or more. Great fun.
Answer: I'll be doing this with 3 other mates:
The American Dream?