Innovative Charitable Giving Strategies

1. Innovative Charitable Giving Strategies Maximizing Impact While Managing Finances Presented by Breen Financial Management team@breenfinancial.com | (407) 712-6780

2. The Importance of Charitable Giving Charitable giving creates meaningful change across communities, education, arts, sciences, and humanitarian causes worldwide. Your contributions become catalysts for transformation, addressing society's most pressing needs while reflecting your personal values. Personal Values Legacy Planning Express your beliefs through meaningful contributions that align with causes close to your heart Create lasting impact that extends beyond your lifetime, shaping future generations Tax Benefits Maximize financial efficiency while supporting worthy causes through strategic planning

3. Tax Benefits of Charitable Contributions Strategic charitable planning delivers powerful financial advantages that extend far beyond simple tax deductions. Understanding these benefits enables you to amplify your giving power while optimizing your overall financial position. Current Year Deductions Estate Tax Reduction Qualified donations can significantly reduce your current tax liability, potentially saving thousands in taxes annually Charitable contributions effectively reduce your taxable estate, minimizing estate tax obligations for your heirs Multi-Year Benefits Sophisticated planning structures provide tax advantages both immediately and throughout your lifetime

4. Lifetime Giving vs. Posthumous Giving Lifetime Giving Posthumous Giving Experience the joy of witnessing your impact in real-time. Lifetime giving allows you to engage directly with beneficiaries, adjust strategies based on results, and maintain income through sophisticated charitable vehicles. Create lasting legacy through carefully structured bequests. Posthumous giving provides maximum flexibility during your lifetime while ensuring your philanthropic vision continues beyond your years. • See immediate results and community transformation • Maintain full asset control during lifetime • Retain income streams through charitable remainder trusts • Substantial estate tax reduction potential • Build relationships with charitable organizations • Flexible bequest structures through wills and trusts • Adapt giving strategies based on changing needs • Opportunity for transformational gifts

5. Understanding Charitable Remainder Trusts (CRT) Charitable Remainder Trusts offer sophisticated donors the ability to generate lifetime income while supporting favorite causes. These powerful vehicles convert appreciated assets into income streams while providing substantial tax benefits. Charitable Remainder Unitrust (CRUT) Charitable Remainder Annuity Trust (CRAT) Pooled Income Fund Combines multiple donors' assets for professional management. Proportional income distribution based on contribution size. Lower minimum requirements make charitable giving accessible to more donors. Provides variable income based on annual asset revaluation. Income fluctuates with trust performance, offering inflation protection and growth potential. Minimum 5% annual distribution required. Delivers fixed annual payments regardless of trust performance. Provides predictable income stream ideal for budgeting and retirement planning. Cannot accept additional contributions after establishment.

6. Charitable Lead Trusts (CLT) Charitable Lead Trusts represent the inverse of remainder trusts, directing income to charitable organizations for a specified period while preserving principal for heirs. This sophisticated strategy particularly benefits high-net-worth families focused on multi-generational wealth transfer. Charitable Income Period Tax Efficiency Asset Return to Family Trust generates annual payments to designated charities for predetermined timeframe, typically 10-20 years Remaining trust assets transfer to heirs with significantly reduced gift and estate tax implications Immediate gift tax deduction based on present value of charitable payments, with potential estate tax freeze benefits

7. Choosing the Right Strategy Selecting optimal charitable giving strategies requires careful analysis of your unique financial situation, philanthropic goals, and family circumstances. The most effective approach aligns your charitable intent with comprehensive financial planning. Timeline Considerations Define Your Goals Asset Evaluation Clarify primary objectives: Do you need additional retirement income? Seeking substantial tax relief? Building family legacy? Your goals determine strategy selection. Different assets offer varying advantages. Appreciated securities avoid capital gains, real estate provides significant deductions, retirement accounts minimize income tax. Balance immediate family needs with long-term philanthropic vision. Consider spouse's financial security, children's education needs, and retirement timeline.

8. Role of a Financial Advisor Professional guidance transforms charitable intentions into sophisticated, compliant strategies that maximize both philanthropic impact and financial benefits. Expert advisors navigate complex regulations while ensuring your giving aligns with comprehensive wealth management. Tax-Efficient Structure Design Trust Administration Navigate legal requirements, compliance obligations, and ongoing trust management responsibilities Optimize timing, asset selection, and charitable vehicles to minimize tax burden while maximizing deductions Estate Plan Integration Seamlessly incorporate charitable strategies into comprehensive estate planning for optimal outcomes

9. Summary & Key Takeaways Strategic Planning Advanced planning multiplies benefits for both donors and recipients through sophisticated tax-efficient structures Vehicle Selection Charitable Remainder Trusts and Lead Trusts offer powerful options for income generation and wealth transfer Professional Guidance Expert advisors ensure compliance while maximizing charitable impact and financial benefits Purpose-Driven Giving Strategic philanthropy creates lasting impact when guided by clear vision and professional expertise Remember: Effective charitable giving combines generous spirit with sophisticated strategy. When properly planned, your philanthropy becomes a powerful force for positive change while enhancing your financial position.

10. Thank You Let us help you give with purpose 📞 (407) 712-6780✉️team@breenfinancial.com🌐 www.breenfinancial.com Breen Financial Management 1515 International Parkway, Suite 1019Lake Mary, FL 32746-7633