Meet an Advisor
We’re grateful for the tremendous partnerships we share with our professional advisors. Read a powerful story by Keith Williams who shares why he and his clients partner with TSFF to invest in strengthening the Bay Area.
TSFF has offered me and several of my clients incredible stewardship and philanthropic partnership. So much so, that my wife Sheila and I opened our own donor advised fund last year.
For 15 years, I’ve had the pleasure of partnering with The San Francisco Foundation (“TSFF”) as the go-to community foundation of the Bay Area. Their ability to seed innovative solutions has translated into some of the most remarkable Bay Area institutions we love and treasure today, including The Exploratorium and KQED. Bold new projects, such as The Campaign for HOPE SF and the building of walkable, thriving cities through transit-oriented development, continue to be led by TSFF.
Working alongside my parents when they opened their first donor advised fund in the 90′s, to joining the Inaugural Professional Advisors Council that launched this month, TSFF has offered me and several of my clients incredible stewardship and philanthropic partnership. So much so, that my wife Sheila and I opened our own donor advised fund last year.
The benefit of giving ourselves the time to consider, evaluate and plan our grantmaking, while availing ourselves of the expertise TSFF offers, makes our giving more effective and rewarding. Likewise, several of my clients with large and small funds at TSFF have also benefited from working hands-on with the Donor Relations and Planned Giving Officers who offer guidance on how to structure your clients’ philanthropy.
As a native San Franciscan with a deep connection to music, I was the volunteer head of the Youth Orchestra Committee for the SF Symphony in the 90’s. Today, through our donor advised fund, we are able to give to the issues we care about: education, the arts, and empowering young people to access opportunity in general.
When it came time for us to name our fund, we were inspired by my family’s history as winemakers and came to The Trellis Fund. A trellis is the structure that is needed for a vine to grow and flourish. We wish to give to charities providing such structure to youth. Moreover, I think this is a fitting definition of what working with TSFF offers to its donors, by providing them the strong and informed structure with which to grow their philanthropy.
This is the time of year our clients take into account critical year-end planning needs. For many of our clients, the impact of the 2013 changes to federal and state tax rates includes the reality of paying higher income and capital gains taxes this year.
Smart charitable giving can reduce the impact of these changes and also meet critical needs within the Bay Area community we treasure.
As a donor and professional advisor partner to The San Francisco Foundation, it is my privilege to highlight below some of the ways TSFF can partner with you and your clients as they design their charitable giving plans for 2013. We encourage donors to work with their professional advisors to determine the specific application of these ideas to their particular tax situation.
Keith McWilliams, CFA, CFP®
Partner, Head of West Coast Region, Evercore Wealth Management
Member of The San Francisco Foundation’s Professional Advisor Council
Ease and efficiency coupled with professional advice
Partnering with The San Francisco Foundation brings ease and efficiency coupled with professional advice:
- Simplify charitable giving with a flexible giving vehicle, like a donor advised fund or charitable remainder trust. The Foundation will act as Trustee for a Charitable Trust if named for at least 50% of the remainder interest.
- Contribute a variety of assets, including complex assets such as: cash; publicly traded securities; closely held securities and partnership interests; certain private and restricted securities; bonds; mutual funds; real estate; and other complex assets. For instance, this flexibility of accepting complex assets can be attractive to entrepreneurial donors with private stock or the like.
- Reduce income taxes and avoid capital gains taxes when appreciated property is contributed.
- Maximize deductibility of charitable contributions for 2013.
Gifts of Appreciated Property Double the Tax Benefits
You have the option to contribute securities or other appreciated property held for more than one year to The San Francisco Foundation. Here are a few tips to keep in mind when thinking about this option:
- Transferring the property to the Foundation, rather than selling it first and then contributing the sale proceeds, is necessary to avoid capital gains tax.
- The San Francisco Foundation can be there for you to sell the securities or other property and then partner with you to determine how you want to use the sale proceeds.
- You will receive two tax benefits: an immediate income tax deduction for the value of the gift and pay no capital gains tax on the securities donated.
- Reminder: Loss stock, or stock which has decreased in value since purchase, should not be contributed to TSFF. You’d need to sell the loss stock first to preserve loss deductibility, and then contribute sale proceeds to TSFF.
IRA Charitable Rollover Available through December 31, 2013
This year, for those of you who may be 70½ or older and need to take minimum distributions from your traditional IRA account this year, the IRA Charitable Rollover remains a viable giving option through December 31, 2013. The IRA Charitable Rollover gift does not generate taxable income nor a charitable deduction. For non-itemizers in our current tax climate, this way to give counts towards a minimum required distribution for 2013 and increases positive giving impact with desirable tax neutrality.
How the IRA Charitable Rollover Works:
This unique federal provision allows anyone 70 ½ years or older to make an outright gift of up to $100,000 directly from their IRA to The San Francisco Foundation without paying income tax on the distribution. Unfortunately, IRA Charitable Rollover gifts are not permitted to donor advised funds, charitable trusts or supporting organizations.
Under this extension you can make gifts directly to The San Francisco Foundation’s Permanent Endowment Fund, which allows TSFF to invest in a stronger Bay Area today and for future generations. You can also make gifts directly to support the Women and Girls Fund and The Campaign for HOPE SF.
The Foundation recommends that you initiate an IRA Charitable Rollover gift by December 2nd in order to ensure receipt at TSFF by December 31, 2013.
TSFF’s Development and Donor Services Team is Here for You
Whether you’re looking for more information on planned giving or personalized strategies to meet your philanthropic journey, The San Francisco Foundation’s Development and Donor Services Team is ready to assist you at any time.
The views and opinions expressed herein are those of the author(s) and do not necessarily represent the views and/or opinions of Evercore Wealth Management or its affiliates.