As an example of a more [...]]]> We’ve raised concerns about the advertising approaches used in the sale of charitable gift annuities. Our biggest beef has been the trumpeting of what appear to be big “returns” — when in fact the returns are largely a return of principal. Read our April 2009 post on this.

As an example of a more forthright disclosure, a recent advertisement for a commercial (not charitable) annuity lists “current payout rates” and then provides a prominent explanation that

“Payout rate is the percentage of purchase price paid out each year and includes both interest and return of principal.”

Come on, charities. You’re supposed to the good guys. Surely you can provide disclosure as good as a commercial annuity offer.

In addition to being easy, donating to charity can be tax-smart – reducing your income, [...]]]> Here’s what you’ve been waiting for. A list of nine ways to give to your favorite charities, and they range from easiest to easy. If it’s difficult, challenging, complex or even sweat-inducing, it doesn’t make the list.

In addition to being easy, donating to charity can be tax-smart – reducing your income, capital gains, and estate and gift tax liabilities.

Download / print out the PDF.

The List:

[2] A donor-advised fund is an investment account administered by a charity or investment organization. A donor opens a donor-advised fund by making a contribution, and receives an immediate income tax deduction. The donor no longer controls the funds contributed, but can recommend grants to charities of their choice.

[3] By donating an appreciated asset, you avoid any capital gains taxes you would pay when you sell it during your lifetime – a tax-smart alternative to selling the asset and donating cash.

[4] Normally, IRA withdrawals are taxable income. Until December 31, 2009, however, you can withdraw and donate tax-free from your IRA, if you are at least age 70 ½. The check should be paid directly from the IRA account to the charity.

[5] Even though it’s called “estate giving” (because the gift happens when you die), you have to act during your lifetime to use these approaches.

[6] This approach also avoids probate. Probate does not apply to lifetime giving.

Forbes.com now reports that charities using the advertising message (which included units of the University of California and United Way Worldwide) have been revising or pulling the ads. Read the new Forbes.com story.

Thank you, [...]]]> In a September 30 posting,  I told you about a Forbes.com story revealing more questionable charitable gift annuity advertising.

Forbes.com now reports that charities using the advertising message (which included units of the University of California and United Way Worldwide) have been revising or pulling the ads. Read the new Forbes.com story.

Thank you, Forbes.com, for bringing this stinky practice to light. There’s still work to be done — see our April posting Charitable Gift Annuity Advertising Stinks on charitable annuity advertising of “returns” and “rates of return.”

Come on charities, you’re supposed to be the good guys. You can do better.

The Bloomberg.com article.

Now Forbes.com reveals more questionable charitable gift annuity advertising.

We said back in April, “Come on, charities. . . . [...]]]> Back in April, when we wrote that Charitable Gift Annuity Advertising Stinks, we shared our concern that charities were not being forthright in the way they described the “return” on their charitable gift annuities.

Now Forbes.com reveals more questionable charitable gift annuity advertising.

We said back in April, “Come on, charities. . . . You’re supposed to be the good guys. Surely you can do better.” We say it again.

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