Charitable & Philanthropic Gifting

Your Momentum Wealth team will work with you to develop your charitable giving plan, helping you determine where you want to give, create an overall budget for giving, identify what assets might be best suited to direct to charity, and select the best structures for giving.

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1. Direct Gifts (Inter Vivos and Testamentary)

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Direct gifts can be made during your lifetime (inter vivos) or through your estate (testamentary). This method is straightforward and offers immediate impact. The key benefits include simplicity and the ability to see the benefits of your contribution during your lifetime.

Inter Vivos Gifts: These are donations made during your lifetime, offering immediate tax benefits and personal satisfaction from seeing the impact of your philanthropy.

Testamentary Gifts: These gifts are made as part of your will or estate plan, ensuring that your philanthropic legacy continues after your passing, potentially offering estate tax benefits.

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2. Use of an Instrument such as a Donor-Advised Fund and a Charitable Gift Annuity

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Donor-Advised Fund (DAF): A DAF allows you to donate assets and take advantage of tax deductions without specifying the charitable organization(s) that will eventually receive the funds at the time of donation. This gives you the freedom to choose your charitable donation recipients over time.

Charitable Gift Annuity (CGA): A CGA involves transferring cash or property to a charity in exchange for a fixed income stream for life. This arrangement provides immediate tax benefits and a reliable income source, while ultimately benefiting the charity.

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3. Gifts of a Remainder Interest / Partial Interest Gifts in Trust

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Charitable Remainder Trust (CRT): A CRT is formed when assets are transferred irrevocably into a fund. This trust fund should generate income, which you or the stated beneficiaries receive for the specified lifetime of the trust. At the end of the term, the remaining trust assets are distributed to one or more charities chosen at the formation of the CRT.

Net-Income with Makeup Charitable Remainder Unitrust (NIMCRUT): A NIMCRUT is a variant of the CRT that allows for variable income distributions based on the lesser of the trust's annual net income or a fixed percentage. If the trust's income is less than the fixed percentage, the shortfall can be made up in future years when the trust earns more income. This structure provides flexibility and can align with varying financial situations.

Charitable Lead Trust (CLT): A CLT is the opposite of a CRT. Assets are transferred irrevocably into a fund in which one or more charities receive the generated income for the lifetime of the trust. At the end of the specified term, the remaining assets are distributed to a designated beneficiary.

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4. Private Foundation and Endowments

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Private Foundation: Creating a private foundation can provide significant tax deductions and greater control over your charitable giving. This strategy allows you to create a lasting legacy while receiving tax benefits. Private foundations are suited for those wishing to make a substantial, long-term impact and have the resources to manage and administer the foundation.

Endowments: Establishing an endowment allows you to provide ongoing support to your chosen cause. The principal amount remains intact while the earnings are used to fund charitable activities. This ensures a sustained impact and can be tailored to align with your philanthropic vision.