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Charitable Alchemy —Turning Reduced Taxes Into Increased Tax-Favored GivingCharitable Alchemy —Turning Reduced Taxes Into Increased Tax-Favored Giving

Robert F. Sharpe, Jr. suggests ways clients can shift dollars saved from lower estate taxes to income tax savings and how the use of the charitable income tax deduction can restore and accelerate tax savings.

Robert F. Sharpe, Jr, CEO

August 24, 2018

8 Min Read
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As planners continue to study the provisions of the Tax Cuts and Jobs Act of 2017 (the Act), a number of techniques are surfacing that may be of interest to those who advise their clients on the technical aspects of their charitable giving.

In a nutshell, increases in standard deduction amounts in tandem with greatly expanded exemptions from federal estate taxes have the effect of reducing tax savings and increasing the after-tax cost of making gifts for a substantial number of taxpayers.  

It’s now becoming clear that the generally positive impact of income and estate tax changes can be used to help mitigate the negative results insofar as charitable giving is concerned.

Let’s look at some ways that clients can make changes in their estate...

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About the Author

Robert F. Sharpe, Jr

CEO, Encore

Robert F. Sharpe, Jr. is CEO of Encore in Memphis, Tenn. He is a nationally recognized pioneer, leader and authority in the field of philanthropy. During more than 35 years serving America’s nonprofit community, he has consulted nationally with educational, health, social service, arts and religious organizations and institutions in the planning and implementation of their major, planned gift and endowment development efforts. A graduate of Vanderbilt University and Cornell Law School, he served as a development officer for a liberal arts college prior to practicing law with a major law firm specializing in taxation and estate planning.

Robert is chairman of the philanthropy editorial board of Trusts & Estates magazine and co-author of the National Association of Charitable Gift Planners (CGP) Model Standards of Gift Valuation. He has served on the board of Giving USA and on strategic task forces for the CGP. Among other publications, his remarks have been featured in The Wall Street Journal, The New York Times, Newsweek, Forbes, Smart Money, The Chronicle of Philanthropy and Kiplinger’s.

He is a frequent speaker at gatherings across the country including Planned Giving Councils in New York, Washington, Chicago, and Los Angeles, the National Association of Charitable Gift Planners national conference, the Association of Fundraising Professionals (AFP) National Conference, and the American Bankers Association Wealth Management and Trust Conference.