How Much Competence is Competent?
In each of these cases, the donor wants help and possibly an immediate answer, and referring him/her back to their own adviser may result in the gift being delayed or defeated.
A. The donor has recently funded a charitable remainder trust with real property. The gift planner has tried to be helpful by providing IRS Form 8283 and Form 709 (gift tax return). After receiving these forms the donor calls and asks the gift planner to stop by sometime soon to help her fill out the forms.
B. The gift planner is visiting an elderly donor who is planning an outright gift of stock. The gift planner suggests that the donor contribute highly appreciated shares that he has owned for more than one year to maximize the charitable deduction. The donor produces a recent printout of his stock holdings and asks the gift planner to help select the stocks he should give and those he should retain. He wants to make sure he is not doing something counter to current market trends and wants to maintain a balanced portfolio.
C. The gift planner has just returned from the information-packed National Conference on Philanthropic Planning where he attended a fascinating session on the Charitable IRA Rollover. He feels he understood every word of the lecture and is ready to serve his donors who need this advice. The next day, he gets a call from a longtime donor who has heard about the charitable rollover and wants to know if her IRA is the best asset to use for funding her gift to the current campaign.
In each case, can the gift planner provide a full and accurate explanation of the financial and tax implications? Is the gift planner advising the donor in an area in which he or she is professionally qualified?
In each case should the gift planner encourage the donor to discuss the proposed gift with competent independent legal and tax advisers of the donor’s choice? How much “encouragement” is enough?
