Written by Beth Harper Briglia CPA, CAP®, Philanthropic Advisor

Tom Peters, author of In Search of Excellence, famously said, “If a window of opportunity appears, don't pull down the shade.”  The pending sunset of the Tax Cuts and Jobs Act (TCJA) offers an opportunity for planned giving professionals to work with donors and their advisors to ensure that their estate plans achieve desired personal and charitable outcomes, while mitigating tax impact. Recognize also that a larger pool of donors will be impacted by changes in exemption limits. Now is the time to communicate with your donors to certainly inform on, and at best to participate in discussions with their professional advisors.

Tax implications are rarely the sole motivator of charitable gifts. However, tax impact can influence the structure of a charitable gift. Consider the following strategies in your stewardship and legacy discussions:

• Donors who use a formulaic approach in their estate plans to determine bequests to family, beneficiaries, and charity, should review this mechanism to ensure it achieves the donor’s intended goals while minimizing taxes.
• Expect an increased use of charitable trusts to provide beneficiaries with income for life or a set term, with the remainder designated for charity. At modest asset levels, charitable gift annuities can provide similar benefits. The current interest rate environment favors these charitable gift structures.
• A Donor Advised Fund with a planned gift component can be used to donate charitable assets today and estate assets in the future.
• Prepare now to accept non-traditional gifts such as real estate and family businesses by using in-house or out-sourced expertise.

Stewardship and communication with donors and their professional advisors is key to “seizing” this coming opportunity!