Charitable Giving
The Franklin Templeton Charitable Giving Program is a donor-advised fund1 that provides clients a simple and flexible way to give to their favorite charity. Contributions are irrevocable, immediately tax-deductible, and can be invested to grow tax-free. When they’re ready, your clients can make grant recommendations to causes that are important to them. Families can even establish multi-generational charitable giving.
Since 2005, The Franklin Templeton Charitable Giving Program has been serviced and administered by Renaissance Charitable Foundation2, an industry leader in philanthropic charities.
Five Reasons Clients like the Franklin Templeton Charitable Giving Program
- Simplicity. A single contribution allows clients to make grants to multiple charitable organizations.
- Tax Benefits. Donations are fully deductible in the tax year they're made. Individuals can also donate appreciated securities and realize their full fair market value as a charitable contribution deduction without incurring capital gains taxes.
- Growth Potential. Contributions are invested and have the ability to grow tax-free, enabling individuals to potentially give more over time.
- Legacy. Multiple successors can be named to the account, to carry forward the legacy of charitable giving.
- Anonymity. If desired, clients can choose to keep all grant information confidential.
Five Reasons Advisors like the Franklin Templeton Charitable Giving Program
- Stronger Relationships. Deepens relationships with high net-worth clients by providing an effective tax and estate-planning tool to help them achieve their financial and philanthropic goals.
- Family Ties. Build relationships across generations to retain assets when wealth passes from current clients to family members.
- Ongoing Revenue. Financial advisors receive a recurring trail of 25 basis points annually on assets in The Franklin Templeton Charitable Giving Program. Financial advisors are paid monthly.
- Asset Acquisition. Attract new assets from your existing client base and from other institutions with similar products.
- Asset Retention. Keep assets that might otherwise be liquidated and redirected to other financial institutions or donated directly to charity.
How the Program Works
Give
Opening an account is simple. Clients make an irrevocable donation4 of personal assets (cash or securities) to Renaissance Charitable Foundation, Inc. (RCF).
Minimum donation = $5,000
Subsequent donation minimums = $1,000.
Get
In addition to the satisfaction that giving to a charity can bring, donations to the program are fully tax-deductible in the year they’re made. When appreciated assets are donated, you can generally deduct their full fair market value from your taxable income—and avoid U.S. federal capital gains tax liability. This might include securities and improved or unimproved real estate.
Grow
Each donation can continue to grow tax-free until ready to make grant recommendations to the chosen charity.
Grant
Clients can recommend grants to qualified charities and nonprofit organizations recognized by the IRS as able to receive tax-deductible contributions.
or visit ft.donorfirstx.com.
Investment Options
Through one or more Franklin Templeton mutual funds, Franklin Templeton provides professional investment management for The Franklin Templeton Charitable Giving Program. Donors have the option to choose their investments by allocating their contribution among the following Franklin Templeton mutual funds:
Global
Growth
Value
Resources
1. A donor-advised fund is a separately identified account that is maintained and operated by a section 501(c)(3) organization, and is not a registered investment company.
2. Renaissance is a charitable organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”) and further qualifies as a public charity under Section 509(a)(1), 170(b)(1)(A), and 4966(d)(1) of the Code.
3. Contributions to The Franklin Templeton Charitable Giving Program are irrevocable contributions made to Renaissance Charitable Foundation Inc., a 501(c)(3) public charity.
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.