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September Newsletter



AARP statistics to give motivation for your planned gift program........41 % of Americans are over age 50, the highest percentage in U.S. history. People over the age of 55 own 77% of all financial assets. By 2011 American 50+ will surpass the 100 million mark. Now there is a prospect pool! ___________________________________________________________________________________

Tax Freebie....Have you heard there is a nice tax benefit available to single persons earning less than $32,550 or couples earning less than $65,000. The target population of this information are your retired prospects with lots of assets but modest retirement income from savings, investments or retirement plans. For those holding investments more than a year, they are exempt from capital gains taxes when sold from 2008 through 2010. Note: only gains within the income limits qualify for zero tax. Lets say a single person has $25,000 in retirement income then they could sell investments with a gain of $7,550 and pay no tax. Gains that push the taxable income over the income limits are taxed at 15%

Another strategy is to encourage your donors if they are providing support to parents to gift their appreciated long term investments/securities to the parents who can then sell them without tax liability.


2006 Tax Facts......'Soak the rich' is a popular concept among some groups. Raise taxes on the wealthiest among us, and we'll raise revenue and be rolling in surplus cash, right? But setting anecdotes and politics aside, a quick look at the facts will tell you the notion that the U.S. can tax its way to prosperity is all wrong. See details at and consider who paid what in 2006.

The top 1% of taxpayers (income of at least $388,806) earn 22% of all income but pay 40% of the total tax.
The top 5% of taxpayers (income of at least $153,542) earn 37% of all income but pay 60 percent of all tax.
The top 10% of taxpayers (incomes of at least $108,904) earn 47 % of all income, but pay 71% of the total tax.
The top 50% of taxpayers (incomes of at least $31,987) earn 87% of all income, but pay 97.1% of the total tax.
The lower 50% of earners (incomes below $31,987) earn less than 13% of all income but pay only 2.9% of the total tax.
Because of refundable credits like the Earned Income Credit(EIC), many pay nothing yet get refunds. Taxpayers who earned less than $32,001 and had at least one child or with no children and earned less than $12,120 were eligible for and received $43.7 billion in EIC


Gift Annuity Featured in Kiplinger Article..... It pays to know as much as you can about how commercial annuities function as you know about charitable gift annuities. I recommend for quality information and their recent article Everything You Need to Know About Annuities has a link to Charitable Gift Annuity information. ___________________________________________________________________________________

CGA rate chart .....comparing a $10,000 cash gift and a $100,000 stock gift for selected ages from 55 to 85 for both one and two-life agreement using the new July 1, 2008 rates is available for download using the following link CGA rate table ____________________________________________________________________________________

Incentive trusts on the rise!......An incentive trust is one in which the Trust maker sets standards of conduct or achievement that must be met before distributions are made to or for the benefit of a beneficiary of the Trust. These standards may include incentives as completing a certain educational level, becoming self-supporting through gainful employment, volunteering for charitable causes supported by the Trust maker. While incentive trusts may not include provisions that are considered contrary to public policy so the element of control over beneficiaries behavior may be limited. I find a greater number of seniors are interested in the benefits of incentive trusts as it forces them to seriously think about how they wish there life work to benefit society as well as to avoid the dreaded disease of Affluenza.


Next month....Charitable and Non-Charitable suggestions for grandparents wishing to help educate grandchildren.__________________________________________________________________________________

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