The Dos and Don’ts of Charitable Gift PlanningThe Dos and Don’ts of Charitable Gift Planning

Charitable gift planning typically involves:

Each of the individuals on this playing field is a link in a chain. Sometimes, one or more links fail because of federal tax law. Let’s looks at the pitfalls and safe havens that are involved in some common gift planning situations.

Weak Links

Here’s an example of a weak link based on actual situations. The donor is a wealthy and prominent individual. The charity’s board chair, a high profile corporate lawyer, solicits the donor to make an 8-figure gift to charity, for which the donor’s name will be placed on the charity’s entrance hall. The donor makes a written pledge in response, which is prepared by the donor’s lawyer. Subsequently, the charity receives a check in satisfaction of the ple...