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Charitable Giving & Philanthropy

If giving back is key to enhancing your legacy, let us work with you to maximize the benefits.

Charitable Giving & Philanthropy

  1. Alec Abbott

    Alec Abbott

    Executive Managing Director

  2. Holly Agbayani

    Holly Wong Agbayani

    CPA

    Partner

  3. Amy Allen

    Amy Allen

    CPA

    Partner

  4. Kelly Baumbach

    Kelly Baumbach

    CFP®, CEPA

    Executive Managing Director

  5. Scott Burack

    Scott Burack

    CPA, J.D., CFP®

    Director

  6. Duncan Campbell

    Duncan Campbell

    CPA

    Partner

  7. Suzy Conley

    Suzy Conley

    Director

  8. Kyle Crawford

    Kyle Crawford

    CPA

    Partner

  9. William Grady

    William Grady

    J.D., CLU®, CFP®

    Director

  10. Evan Heath

    Evan Heath

    CFP®

    Senior Advisor, Wealth

  11. Zach Jaro

    Zachary R. Jaro

    CFP®

    Senior Advisor, Wealth

  12. Jaime K. Lawson

    Jaime K. Lawson

    CPA, MBA, PFS™

    Partner

  13. Michael Lum

    Michael Lum

    Director, J.D.

  14. Jerry Mahan

    Jerry Mahan

    CPA, MBA

    Partner

  15. Jill A. Martin

    Jill A. Martin

    CPA

    Partner

  16. Gary A. Plaster

    Gary A. Plaster

    MBA

    Principal

  17. Susan Queary

    Susan Queary

    MAcc, CPA

    Partner

  18. Randi A. Schuster

    Randi Schuster

    J.D., LL.M.

    Principal

  19. Marianna Willey

    Marianna Willey

    MST, CPA

    Partner

Many individuals and families set aside wealth to give back to their communities, religious organizations or other charities.

Our team works with clients to maximize their gift and tax benefits with philanthropy, wealth and legacy goals in mind.

Charitable giving continuum

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There are essentially only three places your assets can go when you pass away – your heirs, the government for taxes and charity. And, you can only leave so much to your heirs before taxes are incurred. By giving to charity, you can control the tax element, and determine how those dollars are spent through your contributions.

Baker Tilly and Baker Tilly Wealth Management professionals work with our clients to understand their charitable goals. Then, we select from basic, intermediate and advanced options to develop your charitable plan.

Charitable giving continuum

While our professionals are versed in all of the above charitable giving techniques, we have highlighted the four most common below:

  • outright gifts
  • donor advised funds
  • private foundations
  • charitable remainder trusts

Outright gifts

Many donors decide to give outright gifts to charitable organizations during their lifetime. Outright gifts can include cash, property, stock, etc. and can be used to establish or add to a fund.

Benefits
  • Outright gifts can be made during a donor’s lifetime or after their death
  • Significant tax benefits, including income tax, capital gains tax and estate tax savings

Donor advised funds

Donor advised funds (DAFs) are a charitable giving technique overseen by a public charity. They manage charitable donations in support of organizations, families or individuals.

DAFs enable donors to manage charitable giving in tax-smart and meaningful ways. Donors can enjoy the best tax advantages available, make grants on their flexible timetable and build their enduring charitable legacy. There are several donor scenarios where a DAF could be beneficial. Our advisors can help you navigate if a DAF is right for you.

Benefits of a DAF
  • Assets can be managed at any amount by donor’s financial advisor
  • Flexibility in accepting a variety of simple or complex assets including cash, publicly traded securities, closely held stock, real estate, life insurance policies and more
  • Donors can recommend grants to charities throughout the U.S. and overseas
  • Donors decide when and how they want to make charitable grants, which can be scheduled in advance
  • Donors can distribute final grants at death or appoint successor advisors in perpetuity

Private foundations

A private foundation is a legal entity set up with one objective in mind: charitable contributions or activity. The funding for a private foundation usually originates from a single person, family or corporation instead of public fundraising. As the donor, you can decide your mission, your board and where to invest funds. But most importantly, the foundation can exist after you pass away. It will not only become a living family endowment but also perpetuate your legacy.

Benefits of establishing a private foundation
  • Donors control the timing of the ultimate donation of their funds
  • Donors can leave a charitable family legacy
  • Donors have greater control and flexibility
  • Significant tax benefits, including income tax, capital gains tax and estate tax savings

Charitable remainder trusts

A charitable remainder trust (CRT) is an irrevocable trust that creates a philanthropic legacy. CRTs also become an income stream for the person the trust creator designates.

A CRT trustee may sell assets of the trust at any time without the trust incurring capital gain taxes. Without this tax cost, the trust will have full use of the proceeds to diversify the charitable portfolio. This allows a larger amount to work for the donor and the charity.

Benefits of CRTs
  • The income beneficiary has income stream for the term of the trust
  • Remainder interest goes to the charity
  • The client gains an income tax charitable deduction in the year of the contribution to the CRT
  • Highly appreciated, low-basis stock can be sold without the imposition of a capital gains tax
  • The client leaves a charitable legacy
  • CRTs create a current-year charitable contribution deduction
  • CRTs reduce your taxable estate

Baker Tilly Wealth Management Donor Advised Fund powered by American Endowment Foundation

Baker Tilly Wealth Management has joined forces with American Endowment Foundation (AEF) to provide a donor advised fund (DAF).

AEF has over 25 years of experience working closely with wealth, tax and legal advisors. They encourage and allow advisors to remain in control of asset management for their client’s DAFs, regardless of size.

American Endowment Foundation (AEF)

Baker Tilly Wealth Management advisors will work hand-in-hand with your advisor to add our DAF to your charitable giving plan. Contact us to learn more.

Questions regarding your options for charitable giving?

Each charitable giving option has complex benefits and drawbacks. Our professionals can work with you to build the right charitable strategy for you and your family members.

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Disclosure

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Baker Tilly Wealth Management, LLC (BTWM) is a registered investment advisor. BTWM does not provide tax or legal advice. BTWM is not an attorney. Estate planning can involve a complex web of tax rules and regulations. Consider consulting a tax or legal professional about your particular circumstances before implementing any tax or legal strategy. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Securities, when offered, and transaction advisory services are offered through Baker Tilly Capital, LLC, Member FINRA and SIPC; Office of Supervisory Jurisdiction located at 4807 Innovate Ln., Madison, WI 53718; phone: +1 (800) 362 7301. Baker Tilly Wealth Management, LLC and Baker Tilly Capital, LLC are controlled by Baker Tilly US, LLP. Baker Tilly US, LLP, is an independently owned and managed member of Baker Tilly International. © 2023 Baker Tilly Wealth Management, LLC