Dear Advisor Community,

As a wealth advisor, you play a vital role in the philanthropic health of our community. Across every issue area, from education to the arts, we see your collective impact in steering generosity to the causes that matter most. Every time you support a client to leave a legacy or grow their philanthropic impact, our community benefits tremendously. I hope you know how much we value and treasure you, and how proud we are to partner with you for good. 

We’ve seen rising generosity across our community through record-breaking contributions of $100 million for the second year in a row, cross-sector giving of $32 million on Give Miami Day, and increased engagement on issues that matter toward our Collective Impact initiatives. Many of you have stayed close to us as we tackle key issues like internet access and climate resilience, and we look forward to deepening that bond in the coming years.

One recent effort at our Foundation that may be of interest to you is Miami Open for Business. This $20 million program, fueled by Wells Fargo, has allowed us to invest in asset ownership for minority-led small businesses and nonprofits, including larger investments for collaborative real estate purchases, and smaller investments for equipment and technology. You can read about our first round of real estate awardees on our website and the next round will open later this month. 

As you support your philanthropic clients, The Miami Foundation team is available to be a resource and a sounding board to share trends and insights and to support your efforts. We are happy to help you create a charitable solution for your clients that meets their overall giving goals. 

We look forward to working with you and amplifying the philanthropic footprint in our community.

Sincerely,

Rebecca Fishman Lipsey

President and CEO

Pictured: Dr. Juan and Angelina Perdomo.

Legacy Impact in the Community

Thoughtful and intentional estate planning has the potential to make a significant impact on a community. Dr. Juan and Angelina Perdomo were passionate about improving the lives of children and valued the opportunity of a college education. Through their estate, they endowed a gift to the College Assistance Program (CAP) to provide last-dollar grants to Miami-Dade County Public School graduates and to The Miami Foundation’s signature Community Grants program to support children’s wellbeing. Thanks to their generous support and to that of many other generous donors, we are doubling our community grants program this year and offering multi-year grants to stabilize nonprofits after challenging years.

If you have clients that are interested in supporting a wide range of nonprofit issue areas, please contact Alejandra Rodriguez at [email protected].

The New Legacy IRA and a Boost for

Qualified Charitable Distributions (QCDs)

QCDs have become a preferred giving vehicle for donors that give on an annual basis. For the client aged 70 ½ through 72, a QCD removes funds from an IRA before the client reaches the age-73 threshold for Required Minimum Distributions (RMDs). This can lessen the eventual income tax hit that accompanies RMDs. And for RMD-applicable clients, the QCD counts toward their RMD. In both cases, the QCD transfers do not fall into the client’s taxable income.

QCDs are even more popular now that the $100,000 cap will be indexed for inflation under the new laws. Also, under the new laws, a one-time $50,000 distribution to a charitable remainder trust or charitable gift annuity is now permitted. 

Although donor-advised funds cannot accept QCDs and defer the income, The Miami Foundation offers other types of funds that can accept QCDs, such as designated funds and field-of-interest funds which are ideal recipients of QCD transfers. These fund types can be overlooked as eligible distributions but can deliver a high value to your client and to the community. 

Type of Charitable Assets



Although cash and securities are the easiest to donate, the Foundation can accept a variety of assets. Most recently, the Foundation amended its policy to accept cryptocurrency. As you may know, the IRS is formalizing its guidance and requirements for a qualified appraisal of cryptocurrency assets. Now it is required for an appraisal to be completed in order to claim a deduction of $5,000 or more. Advisors should be aware of these requirements, particularly if their clients are involved in the cryptocurrency market or are considering giving cryptocurrency assets to support charitable causes.

What the IRS may be up to in 2023?

Advisors of philanthropic clients are monitoring the IRS's priorities for the fiscal year as it may impact charitable giving. The Miami Foundation will keep you abreast of any updates affecting charitable giving, including regulations on donor-advised funds.

Pictured (l to r): Abel Horvath, Fulfillment Hub, Global Empowerment Mission President, Michael Capponi, Miami-Dade County Mayor Daniella Levine Cava, Miami Foundation President and CEO Rebecca Fishman Lipsey, Miami Foundation Trustee Jose A. Hernandez-Solaun, at the launch of the Miami Disaster Resilience Fund in May 2022.

Disaster and Community Response: Perspectives for your Clients

The Foundation has seen an increase in donors responding to natural disasters and community crises, both domestic and international. Through a donor-advised fund, the Foundation can accommodate international grantmaking through an easy process. The Foundation works with an intermediary to vet the nonprofit organization and confirm tax-exempt status in the foreign country. For issues at home, the Foundation has a long history of supporting the community through disasters and committed last year to launch its Miami Disaster Resilience Fund.

We have seen families allocate 5-10% of their annual giving budgets to support community challenges should they occur. Trends show that in 2021, American contributions increased by 4% to almost $485 billion to immediate needs. Covid-related concerns likely drove up giving in the categories of Human Service, Public-Society Benefit, and Health. However, annual giving to international affairs declined by about 5% from 2019 to 2021, with figures potentially changing for 2022 due to aid to Ukraine, Turkey, and Syria.

Read-worthy articles

How Did Market Conditions Affect Private Foundation Giving in 2022?

New Tax Law Rewards Charitable IRA Retirees With A $50,000 Income Tax Deferral Opportunity

Recent Priority Guidance Plan Shows Increased Focus on DAFs by IRS    

   

Where did the generosity come from? - Infographic

Please note that this newsletter is for informational purposes only and should not be considered legal, accounting, or financial planning advice.