Personal Finance
Personal Finance
Gifting Strategies / Private Foundations

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Among our clients with significant assets, charitable giving is frequently emphasized as one of their most important financial goals. As part of your wealth management strategy, we can help you develop and achieve goals reflecting your philanthropic interests and integrate your charitable giving into your financial plan.

 

Charitable gifts are accompanied by significant tax advantages

Your charitable contributions can result in substantial tax savings, as charitable gifts are not subject to estate or gift tax. In some cases, such gifts may also generate an income tax deduction. We can help you explore many ways to give to the causes that are important to you. In addition to outright gifts, it is possible to divide gifts between individuals and charities through certain types of trusts.

Establish a charitable remainder trust to benefit from income now

One alternative that offers dual benefits is the Charitable Remainder Trust. By establishing such a trust, the grantor can, in some cases, enjoy a charitable deduction as well as receive a stream of payments based on a fixed dollar amount or a fixed percentage of the trust value. At the grantor's death, remaining trust assets are distributed to the charity or charities named as beneficiaries. Charitable lead trusts and certain other trust instruments may also be used as part of your gifting and estate plan.

A private foundation can establish a charitable legacy and help you avoid unnecessary taxes

A private foundation is a tax-exempt charitable organization that can be created during your lifetime or at your death. Typically, an endowment is created and managed by the foundation, which makes charitable gifts from the endowment. You have the option of controlling the timing, amount and recipients of distributions by serving as a trustee of the foundation. You can also appoint other trustees, including family members and/or a professional trustee to ensure that the foundation's mission is carried out. Establishing a private foundation is an effective way to create a unique and long-term personal legacy.

Simplify your giving with The Fund for Charitable Giving

Developed to provide donors with financial and administrative advantages, The Fund for Charitable Giving ("The Fund") is a tax-exempt public charity that maintains donor-advised sub-accounts and invests its assets in four investment pools. Income is automatically reinvested and appreciation credited to your gift until it is distributed. You can choose the recipients for your gifts or select one of The Fund's four Fields of Interest--The Arts, Medical Research, The Environment or Human Services--to receive your donation. Donations can be made in your name or anonymously, and we handle all administrative details in the process, including tax documentation.

Contribute assets when it makes the most sense, gain an immediate tax deduction, avoid capital gains, and advise us later about the recipients of your gift. By providing the flexibility to spread your gifts over time, The Fund helps you "manage" your philanthropy, simplify your giving, and allows you to optimize the timing of your tax benefits while still maintaining a consistent level of support. You can also set up a memorial fund, a disaster relief fund, or other types of special-purpose funds.

Through PNC Wealth Management, you can work with professionals who specialize in developing and implementing philanthropic strategies as part of the planning process. PNC can help you make your charitable giving plans a reality.

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