Page 3 - Gamma Tauk - Fall 2015

DONOr alUMNI NeWS aDVISeD FUND? any Gamma Tau brothers are generous donors Don Denby ’58 - We continue to add grand and great grand children I am 80 and every day is a blessing. to charitable causes. Typically, they make cash Mcontributions which are not tax-effcient. a few donors are able to make donations of appreciated assets such as common stock to their favorite charity. In this situation, the capital gain is not taxed but is part of the total donation and can be claimed as a charitable deduction on the current year tax return. another method to make tax-effcient charitable donations is through a Donor-advised Fund (DaF). a DaF is a vehicle for charitable giving, administered by a public charity, typically established by a fnancial services company such as Fidelity, Vanguard, Schwab, etc. Donations from DaF’s can be made to the Phi Gamma Delta educational Foundation for general purposes or directed to Gamma Tau through our cHeF (chapter House education Fund). (Donations can also be made to other types of qualifed charities such as churches, medical research, environment and animals, arts and culture, etc). How does a DaF work? Donors make a charitable contribution to a DaF now and receive an immediate tax HOMecOMING 2015 deduction. The contributions are invested with the potential to grow over time. The donor can decide how the contributions in their DaF account are invested. Future gains on these funds are sheltered from taxation giving donors the ability e had a fantastic alumni turnout with the Yellow Jackets stealing to increase their impact on the causes they support. Donors turnout for Homecoming 2015! the lead from Florida State in the fnal recommend future distributions from their DaF to qualifed WThe guys also did a great job seconds of the game with a nail biting charitable 501(c)3 organizations, using their discretion as to providing a warm welcome on the 22-16 win! If you had to miss out this timing and amounts. let’s give an example: overcast day with plenty of tasty muffns, year, rest assured, the FIJI men stormed Brother Joe Jones ’71 knows that he and his wife, fruit, and hot coffee. The build up for the feld in celebration like true champs. Susan, want to make charitable contributions to various excellence could not have had a better charities over a period of time. among other assets, he owns a mutual fund that has appreciated in value. If he takes a withdrawal directly from the mutual fund, he will have to pay capital gains taxes. However, if he donates shares of the mutual fund directly to a DaF, he will receive a tax deduction for the entire amount of the donation in the current tax year. He wants a larger than usual charitable tax deduction this year. Therefore, he sets up a DaF with Fidelity charitable and makes an irrevocable contribution of mutual fund shares worth $15,000. He decides to invest the funds in the account using conservative investment choices. He decides to make distributions from the DaF this year as follows: his church building fund $2,000, Gamma Tau cHeF $500, american cancer Society $200, Fine arts Fund $200, ScPa $100, Historical Society $100, Friends of The Smithsonian $100. The distributions from the DaF to these charities are made in the name of “The Joseph S. Jones and Susan e. Jones Family Fund.” Therefore, he has made charitable gifts of $3,200 this year but received a tax deduction of $15,000 (subject to a limitation of 30% of adjusted gross income for appreciated assets or 50% for cash contributions). He will not receive additional tax deductions for the account balance in the future unless he contributes more funds into the account at which time the newly donated amount will be deductible. His remaining DaF balance of $11,800 is invested Gamma Tau Ad Astra and should grow over time. He can decide on specifc distributions in future years (some DaF’s have minimum distribution requirements such as 5% of the DaF balance We are saddened to have learned of the passing of our Gamma Tau Brothers. per year and $50 per distribution). He also has made a Our sympathies to their friends and family. choice on what happens to the DaF balance when he and his wife die. They have decided that a third will go to their James Russell Jr. ’47 James Black ’54 church, a third will go to the Gamma Tau cHeF and a third Alex Shwaiko ’47 John Fischer ’54 will go to her sorority’s educational fund. Is a DAF a good choice for you? Discuss with your fnancial advisor. Joseph Wilson Jr. ’55 3