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Help Others Through Charitable Giving and Receive a Tax Benefit
One of our greatest pleasures is helping our clients give to their favorite charities. There are many ways to give beyond simply writing a check, and our expertise can prove highly beneficial.
Presently, the tax code offers incentives for gifting of one’s assets or income. Tax deductions are given for current contributions and, for estate owners, charitable gifts can reduce the size of the estate to help minimize estate taxes.
Often times, an individual will designate a charitable beneficiary in their will to benefit the organization after the individual dies. By using charitable gifting techniques, a donor may be able to benefit the charity while living without having to sacrifice the income that an asset can generate. Understanding how properly structured charitable gifts can provide current benefits for both the donor and the charity could be important for the charitably inclined.
What is a Donor-Advised Fund?
A donor-advised fund is a philanthropic vehicle established at a public charity. It allows donors to make a charitable contribution, receive an immediate tax benefit and then recommend grants from the fund over time. A donor-advised fund may be held at our custodian (TD Ameritrade Institutional) and invested in one of our low-cost, diversified portfolios.
Environmentally-Conscious Investments in Your Donor-Advised Fund
For those investors who desire to align their investment decisions with their views on the importance of preserving the environment and mitigating adverse climate effects, Clarity offers portfolios that utilize the two sustainability funds from Dimensional Fund Advisors that cover U.S. and international developed market equities. These funds place a large emphasis on consideration of greenhouse gas emissions, but they also consider the following factors: Land use and biodiversity, toxic spills and releases, operational waste, and waste management.
The top contributors to greenhouse gas emissions can be underweighted or excluded from the portfolio. Separate consideration is given to potential emissions from reserves, as certain energy companies are particularly vulnerable to future regulations limiting the amount of fossil fuels that can be consumed. Other environmental and social sustainability variables considered for the possibility of excluding certain companies are: Factory farming, cluster munitions manufacturing, tobacco, and child labor.
The weighted expense ratios on our Sustainability Portfolios range from 0.21% to 0.27% annually.
Source: "The Evolution of Sustainability Investing", Dimensional Fund Advisors, May 2016.