David Dietze, Founder, President, and Chief Investment Strategist of Summit-based Point View Wealth Management -- an investment advisor based in Summit -- presented a review of "Donor-Advised Funds and Private Foundations," while A. Jude Avelino of Avelino Nitkewicz LLP discussed IRA and retirement assets, at an educational session sponsored by the Overlook Foundation at the the Beacon Hill Club.

Dietze detailed the following:
 
Donor Advised Funds:  Easy Tax Advantaged Charitable Giving
Positives
 
- Easy to get started
- Immediate tax deduction/avoidance of capital gains/turns assets into cash
- Your money grows as you make charitable decisions
- Easy “Bill Pay Like” costless recordkeeping/distribution of your gifts
- Allows for small gifts otherwise impractical for stock gifting
- Easy diversification of your giving
- Anonymity if desired
 
Disadvantages


- Gifts irrevocable
- Shouldn’t use appreciated stock held less than 12 months or stock held for a loss
- Administrative/Asset management fees
- Charities kept waiting/no payout requirement

Community Foundations: A Backyard Donor Advised Fund With Inside Knowledge On How Best to Help Your Community

Positives

- Similar tax advantages as Donor Advised Funds
- Local expertise to advise you on most worthy beneficiaries
- Keeping your money in your community
- Opportunity for field research on your charities
- Joining a network of like-minded philanthropists
- Influence how other monies in the fund are used
- May more readily accept nonstandard assets

Disadvantages

- Potentially less anonymity
- Whiz Bang websites not typically as available
- Separate account may not be available for smaller amounts

Private Foundations: For Big-League Philanthropists Willing to Devote Large Amounts of Money and Time

Positives

- Prestige
- Putting your friends/family on the payroll
- Greater opportunity to customize your investments pre-gifting

Disadvantages

- Expensive due to high startup/operational costs 
- Lesser tax deductions (30/20 vs. 50/30)/excise taxes (2%)
- Annual gifting requirements
- Time consuming
- Becomes a burden when founder loses interest and or can no longer continue
- Less privacy/public tax returns

Point View Wealth Management, Inc. works with families in Summit and beyond, providing customized portfolio management services and comprehensive financial planning, to develop and achieve their financial goals. We are independent and fee only.  How can we help you?  Contact David Dietze (ddietze@ptview.com), or Claire Toth (ctoth@ptview.com), or call (908) 598-1717 to learn how.


CNBC has named Point View number 5 on its list of the top 100 American fee-only wealth managers.  See cnbc.com/id/101619698.