You may have already established a charitable trust or may be thinking of putting together one in the near future. This initiative from Future Wealth LLC will enable you to create your own charitable fund in a name of your choice, distribute to charities of your choice and create a legacy that can be continued by your spouse/children. If you have an existing charitable trust, you can seamlessly transfer the assets into your own charitable fund. In association with TD Ameritrade and American Endowment Foundation, we are launching the program by which you can contribute to the charitable fund from your existing TD Ameritrade accounts and receive the tax benefits, come tax time. The whole process will be facilitated through your existing relationship with Future Wealth LLC and TD Ameritrade.
How the program works: Future Wealth LLC will assist in establishing your own customized charitable fund in the name of person/place or any other title of your choice. You could name it after your father/mother/son/daughter/hometown etc. The charitable fund will be administered by American Endowment Foundation (AEF), assets will reside at TD Ameritrade and Future Wealth LLC will be managing the assets by investing them similar to your other accounts at TD Ameritrade. You will have access to the account via TD Ameritrade/AEF and be able to see your charitable contributions and monitor its progress.
The mechanics of the program: You can contribute in cash or assets (stocks, bonds, real estate etc.) and take a tax deduction for the full amount in the year of contribution. In the case of stock contributions, the advantage is that you can avoid paying capital gains on appreciated stock while getting the full tax benefit of the appreciation. The assets in the charitable account can be distributed/granted to any number of qualified charitable organizations of your choosing at any point in time (minimum grant amount is $250). These grants do not have to occur in the same year of contributions and, in the meantime, the assets in these accounts grow tax free, much like a 401K/IRA, until you are ready to distribute them to the charity of your choice at a time of your choosing.
Possible tax savings from your charitable contributions: AEF will be providing the appropriate tax documents at tax time for your deductions. While I would recommend you consult with your tax advisor to get to the details of how charitable contributions are handled in your tax returns, there are calculators that provide you with a rough estimate of tax savings from every dollar of charitable contributions. The link is here: https://www.fidelitycharitable.org/tools/charitable-tax-savings-calculator.html.
The minimums and fees of the program: Initial contribution minimum is $10K (can be cash or assets) and subsequent contributions can be as low as $250. AEF charges $500 annual administration fee and there are no separate fees from TD Ameritrade or Future Wealth LLC. However, Future Wealth LLC’s quarterly portfolio management fee will include management of the charitable accounts in addition to your existing accounts.
If you are inclined to set up your own charitable fund or transfer existing fund(s) from another program, please contact us at [email protected] or call us at 408.839.4430.