Philanthropy

Home » Financial Planning » Philanthropy

Philanthropy

You’ve spent years successfully accumulating your wealth. You’ve likely also spent a great deal donating to charities and foundations that share your values. But have you been doing it effectively? Is your family involved and prepared to continue your legacy? At Pallas Capital Advisors, we understand that philanthropy looks different to different people. We work together to take a thoughtful, creative, and collaborative approach to your philanthropic objectives and planning that will last for generations to come.

What is Philanthropy?

Philanthropy comes in many different forms, but at its core – it is serving others by doing good. For many, that is closely tied to their faith, and for others, it means making a lasting impact on their community – even for generations to come. For those who believe that their legacy cannot be separated from their philanthropic efforts, it is critical for them to engage their next-generation family members now to help them catch the vision that is so important to their legacy.

Why Choose Philanthropy?

Individuals choose to make philanthropy a priority in their lives because it is rewarding and satisfying to see others be helped from their benevolence.  Certainly, there are also tax benefits – income and estate tax – and helping clients take maximum advantage of those benefits is an important part of the work we do at Pallas.

Putting it into Place

For those who seek to make significant, lasting gifts to charity – there are many ways to execute on that vision. Whether during a lifetime, at death, or both – the use of charitable trusts, donor-advised funds, private foundations, or other charitable vehicles should be considered. Another important decision that is often overlooked is whether or not cash is the best asset to gift. Often, there are better choices. At Pallas, we help clients see the big picture, so they can understand and take advantage of all of the options that are in front of them.

What We Do At Pallas

When it comes to philanthropic planning, at Pallas we do three important things.

  1. We help clients to involve their children to understand the importance of charity to them, and to their communities.
  2. We make sure clients understand and know which options are most appropriate to help them attain their charitable objectives, and
  3. We provide financial modeling so clients can see how their decisions regarding charity fit into their overall estate and financial planning goals.

Why Pallas?

Tools for Individuals and Families Who Want to Make Significant Philanthropic Impact:

Charitable Remainder Trusts

Read More
​

Charitable Remainder Trusts

A charitable remainder trust (CRT) is a unique kind of irrevocable trust in which the donor, or one or more individuals designated by the donor, receive(s) income from the trust for life or joint lives, or for a period of up to 20 years, after which the trust terminates and the trust corpus is distributed to the charitable remainderman. The income payout period may last for more than one life, but the present value of the charitable remainder must be 10% or more of the initial value of the property transferred to the trust. Because a CRT can be arranged to pay income to the donor (or other individual) for life, it often permits the donor to make a major gift to a charitable institution (and qualify for immediate income tax benefits without losing spendable income).

Charitable Lead Trusts

Read More
​

Charitable Lead Trusts

The charitable lead trust (CLT) is a trust arrangement under which an annual income from the trust is paid to a qualified charitable organization for a specified period of years, with the principal of the trust passing to noncharitable beneficiaries (often the children or grandchildren of the donor) when the trust terminates. Thus, the lead trust is a technique for making a "temporary gift" of income to a charitable institution and eventually passing the property to individual beneficiaries. Because the value of the income interest is tax-deductible for federal gift and estate tax purposes, the lead trust is often used to reduce these taxes while ultimately passing ownership to family members or other beneficiaries.

Donor-Advised Fund

Read More
​

Donor-Advised Fund

A Donor Advised Fund (DAF) is a charitable investment account that provides simple, flexible, and efficient ways to manage charitable giving. The money that goes into a Donor Advised Fund becomes an irrevocable transfer to a public charity with the specific intent of funding charitable gifts. This public charity serves as the administrator of the DAF. The Donor may be an individual, family, trust, Private Foundation, or corporation. The Donor may make grant recommendations or provide advice on distributions from the fund to qualified charitable organizations. The DAF is free to accept or reject the recommendations.

Private Family Foundations

Read More
​

Private Family Foundations

A Private Foundation is a tax-exempt organization (a trust, corporation, or hybrid) which a donor creates, funds, and controls for the primary purpose of making grants to charities and/or individuals. A Private Foundation funded during the donor’s lifetime can provide philanthropic recognition to the donor and family. Through the management of the foundation, it can instill in the donor’s heirs a sense of social awareness and responsibility that might not otherwise be present, while allowing them to be paid for their work on the governing board.

Qualified Charitable Distributions

Read More
​

Qualified Charitable Distributions

A Qualified Charitable Distribution (QCD) is a direct transfer by an individual over age 70½ from an IRA to a qualified charity. The charity must be a public charity or private foundation that can receive general contributions (not a Donor Advised Fund or a §509(a) Supporting Organization). The QCD must otherwise have qualified as a charitable income tax deduction. A person can direct up to $100,000 per year in this manner. The distributed amount is excluded from income so the taxpayer does not need to report the distribution as taxable income for federal tax purposes. Furthermore, the distribution counts toward the taxpayer's annual required minimum distribution if one is due. However, the distribution does not qualify for a charitable deduction.

Coordination is Key

It is critical that families meet together to discuss the importance of charitable endeavors both during lifetime and after death, through the continuation of work by family members. It is also just as important to discuss these objectives with the family’s financial advisory team to ensure that the philanthropic goals are coordinated with the family’s entire retirement and estate planning objectives.

Subscribe to Our Weekly Insights

Braintree, MA

45 Braintree Hill Office Park Suite 201
Braintree, MA 02184
(781) 971-5052

Wakefield, MA

701 Edgewater Drive
Suite 140
Wakefield, MA 01880
(781) 587-3478

Portsmouth, NH

36 Maplewood Avenue
Portsmouth
NH 03801
(603) 292-3699

Park Ridge, NJ

1 Maynard Drive
Suite 2101
Park Ridge, NJ 07656
(551) 277-2686

Newport, RI

51 Long Wharf Mall
Newport, RI 02840
(401) 847-0505

Check the background of your financial professional on FINRA’s BrokerCheck.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Pallas Capital ADVISORS is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Pallas Capital Advisors and its representatives are properly licensed or exempt from licensure. This website is solely for information purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Pallas Capital Advisors unless a client service agreement is in place.

Advisory services are only offered to clients or prospective clients where Pallas Capital Advisors and its representatives are properly licensed or exempt from licensure. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Pallas Capital Advisors unless a client service agreement is in place.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information.