The Evolution of Charitable Capital Planning 

A NEW FRONTIER FOR FINANCIAL ADVISORS

Empowering you & your clients to use new cash flow created through increased tax-advantaged income and tax deductions as well as cutting away capital gains tax to satisfy insurance & investment needs.

In order to respect wealth and maximize its use in achieving true financial objectives for your clients, it is important to understand that wealth breaks down into three forms of financial capital within their financial life support systems surrounded by the following financial areas:

Financial Capital is made up of all forms of investments; real estate, stocks, bonds, businesses, collectibles, cash, bank accounts, etc.. Although most Americans are only aware of two forms of Financial Capital, the three forms are:

Taxable Capital: The ownership, use and control of this capital must be given up by your clients and passed on to the U.S. Treasury for the general welfare of America and the world through ordinary income and capital gain taxation and, again at death . . . estate taxation.

Personal Capital: This is Capital that is left over after taxation. Your clients have control, use and ownership of this capital. They can sell, consume or pass this capital on to their heirs or satisfy their giving desires.

Charitable Capital: This misunderstood and underutilized third form of capital can be created by you for your clients through the conversion of taxable capital using the heart of tax law dating back to 1969. Congress passed into law IRC Section 664 in order to help motivate American citizens to give more, while sidestepping the inefficiencies of our governmental revenue and disbursement systems. Although your clients give up ownership, the use and control of this capital can be maintained while self-directing the contributions of your clients to society through custom designed planned giving. Your clients can pin-point exactly where they wish funds to be contributed in satisfying their heart-felt giving objectives while:

Most American citizens are not aware of what congress created over thirty years ago. Charitable organizations and financial advisors have not been very effective in educating their donors and clients, respectively, in how to convert Taxable Capital into Charitable Capital in order to generate more Capital for them to use and control. 

In addition, the extreme desire for Americans to have ownership of assets maximizes income, capital gain and estate taxation. However, the redirection of that desire can allow for the continued control and use of capital while increasing income, decreasing taxation, increasing inheritance and increasing giving — maximization of Charitable Capital.