Expressions of Philanthropy Techniques to Make Charitable Gifts

1. Expressions of Philanthropy Techniques to Make Charitable Gifts Presented by David T. Harmon, Esq. Charles A. Bruder, Esq. The information provided is for presentation purposes only and does not constitute legal or tax advice in any manner.

2. Why Make Charitable Gifts? • Benefits the Church – “giving back” • May provide income tax benefits • Could produce a current income tax deduction • Reduce your Estate’s value for federal tax purposes • 2006 exclusion amount - $2 million • May increase in the future • Provide the Church with property that may appreciate in value • Receive the benefit of future appreciation The information provided is for presentation purposes only and does not constitute legal or tax advice in any manner.

3. Keys to Successful Charitable Gifting • Have a gifting plan • How much do I give? When? • Gift of cash or property? • Coordinate charitable gifting with your Estate Plan • Lifetime gifts vs. testamentary bequests • Update periodically to ensure that testamentary gifts will be made • Periodically review your philanthropic goals • Coordinate with Church gifting plans The information provided is for presentation purposes only and does not constitute legal or tax advice in any manner.

4. Bequests • Simplest form of post-death charitable giving • Provisions of the donor’s Will provide for charitable gift • Received by the Church upon the donor’s death • Can be a specified amount or percentage of the Estate The information provided is for presentation purposes only and does not constitute legal or tax advice in any manner.

5. Bequests • Benefits • Provides for charitable gift to the Church • May allow the Estate to receive a charitable deduction • May reduce death taxes • Allows donor full use of the assets during his or her lifetime • Detriments • No income tax benefit to the individual during his or her lifetime • Must be specifically provided for in the Will • Asset may not be in the Estate at death The information provided is for presentation purposes only and does not constitute legal or tax advice in any manner.

6. Charitable Remainder Trusts • Trust created during an individual’s lifetime • Funded currently • Provides an income stream to settlor • Remainder given to charity The information provided is for presentation purposes only and does not constitute legal or tax advice in any manner.

7. Charitable Remainder Trusts • Benefits • Provides for a current income tax deduction • Can be used to avoid capital gains tax on highly appreciated assets • Assists in cash flow management • Fulfills philanthropic objectives • Benefits the Church The information provided is for presentation purposes only and does not constitute legal or tax advice in any manner.

8. Charitable Remainder Trusts • Assets must be contributed to the trust during lifetime • Loss of use of assets • Minimum income amounts must be paid to the settlor annually • If income is insufficient, principal must be distributed • Requires set-up and administration of a trust • Certain fees involved The information provided is for presentation purposes only and does not constitute legal or tax advice in any manner.

9. Other Potential Charitable Gifting Techniques • Gift annuities • Life Insurance Policies • Charitable testamentary trusts • Gifting programs through the Church • Private foundations The information provided is for presentation purposes only and does not constitute legal or tax advice in any manner.

10. David T. Harmon, Esq. David T. Harmon, a member of Norris McLaughlin & Marcus, focuses his practice in the areas of corporate, labor & employment, and higher education law. Mr. Harmon serves as legal counsel for privately and publicly held companies, representing them in a wide range of matters, including corporate transactional and ongoing general counsel work. Much of his work is as a strategic advisor to clients. Mr. Harmon represents colleges and universities through extensive work as their outside general counsel. His work for many of these clients involves advice and counsel concerning outstanding tuition and housing receivables, and strategies regarding maximizing collections and coordination of department practices, procedures and documentation relating to these strategies. He has extensive experience working with tax-exempt organizations. Mr. Harmon also represents business management and individuals in the negotiation and preparation of employment and severance agreements, in addition to the review and modification of compliance programs. He also addresses asset protection matters for clients. Mr. Harmon has published many articles and frequently speaks on various legal topics. A graduate of Tufts University, Mr. Harmon received his law degree from Syracuse College of Law. He is admitted to practice law in New York. Charles A. Bruder, Esq. Charles A. Bruder is an associate in the Tax Department of Norris McLaughlin & Marcus, P.A. and concentrates his practice in the areas of employee benefits and executive compensation. He is experienced in all aspects of defined contribution and defined benefit plans, deferred compensation arrangements, stock options plans, employee stock ownership plans, and other incentive and equity-based compensation arrangements. Mr. Bruder frequently counsels clients in the areas of plan qualification and administration issues, ERISA fiduciary issues, plan compliance issues and employee benefits matters in the context of business reorganizations. He is a frequent lecturer in the area of employee benefits and has previously published articles in such publications as The Exempt Organization Tax Review, New Jersey Law Journal, and The Metropolitan Corporate Counsel. A graduate of LaSalle University, Mr. Bruder received his law degree from Widener University School of Law and his L.L.M. degree in taxation, with distinction, from Georgetown University Law Center. He is admitted to practice law in New Jersey and Pennsylvania.

11. Questions Contact Charles A. Bruder, Esq. or David T. Harmon, Esq. at: 721 Route 202/206 Bridgewater, New Jersey 08807 (908) 722-0700 www.nmmlaw.com The information provided is for presentation purposes only and does not constitute legal or tax advice in any manner.