Charitable Giving Under the Tax Bill

The Tax Cuts and Jobs Act includes three provisions related to charitable giving.

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Charitable Solicitation in Tennessee

Charities that intend to solicit donations in Tennessee should not overlook the Solicitation of Charitable Funds Act.

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Distribution from Donor Advised Fund to Private Foundation

Technically, it is possible, but there would be some significant strings attached.

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Churches and 501(c)(3) Status

Must a church file an exemption application in order to be recognized as tax-exempt under I.R.C. § 501(c)(3)?

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PLR: CRUT Not Subject to Private Foundation Rules

Grantor executes a charitable remainder unitrust (CRUT). CRUTs are normally subject to certain private foundation rules. However, Grantor never claims an income tax or gift tax charitable deduction with respect to the trust. Is the CRUT still subject to the private foundation rules? A quick review of I.R.C. § 4947(a)(2) would suggest the answer is yes. It provides that: In the case of a trust which is not exempt from tax under section 501(a), not all of the unexpired interests in which are devoted to one or more of the purposes described in section 170(c)(2)(B), and which has amounts in trust for which a deduction was allowed under section 170, 545(b)(2), 642(c), 2055, 2106(a)(2), or 2522, section 507 (relating to […]

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Early Termination of CRTs

There is a high economic cost to terminating a charitable remainder trust (CRT) before the date specified in the trust. There are two primary tax issues associated with terminating a CRT early:  the excise tax on self-dealing and the excise tax on the termination of a private foundation (a CRT is treated like a private foundation for purposes of this tax). These issues can apparently be avoided by following procedures described in various private letter rulings (PLRs). However, a PLR is only binding on the person who requested it.  Thus these PLRs provide guidance only and may not be relied upon as precedential authority. According to the available guidance, a CRT can be terminated early if authorized under applicable state law.  […]

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