Fifth Third Bank
The State of Charitable Giving: The
Profession, Politics, and Their Impact
on the Charitable World
 Fifth Third Bank
| AllBank
Rights
Reserved
| For
Internal
UseOnly
Only
Fifth Third
| All Rights
Reserved
| For
Internal Use
Goals for the Presentation

Washington Update

Highlight Four Key Areas of Conversation
and Concern – Status and Impact
— Estate Tax
— Charitable IRA Rollover
— Charitable Tax Deduction
— Economic Downturn

2
Other Areas of Concern to Watch in 2011
 Fifth Third Bank | All Rights Reserved | For Internal Use Only
Washington Update


3
Foundations on the Hill – March 8-9,2011
Representatives from 250 Private, Family
and Corporate Foundations

Tax Reform on Top of Everyone’s Minds

Not for Profit Fight Ahead

What’s Next?
 Fifth Third Bank | All Rights Reserved | For Internal Use Only
The State of Charitable Giving
4

Temporary Estate, Gift, and GST Tax
Provisions – 2010 Tax Relief Act

Applicable exclusion amount is defined as $5M and then adjusted
for inflation for any decedent dying after December 31, 2011.

Estate, gift, and GST tax rate is capped at 35% after a $5M
individual exclusion

Special election for 2010 for decedent dying in 2010, the executor
may elect to use either no estate tax and modified carry-over basis
or these new provisions
 Fifth Third Bank | All Rights Reserved | For Internal Use Only
The State of Charitable Giving

Charitable IRA Rollover Act
— Expired at End of 2009
— Extended Until December 31, 2011
— What we Have:
– 70 ½ years of Age
– $100,000 Maximum/No Deduction
– Other Restrictions
5
 Fifth Third Bank | All Rights Reserved | For Internal Use Only
The State of Charitable Giving

What Would We Really Like?
— Public Good IRA Act – SB557
– Remove $100,000 Limitation
– Giving Options Starting at 59 ½
– Include Distributions to Supporting
Organizations, Donor Advised Funds and
Private Foundations

6
Will It Happen?
 Fifth Third Bank | All Rights Reserved | For Internal Use Only
The State of Charitable Giving

Limitation on Tax Rate for Itemized Deductions
— Cap at 28% for families making more than
$250,000.
— Charitable Deduction has always been attached to
the tax rates.
— Decoupling has been proposed in the past but has
never happened.
— Started as Part of the Discussion on How we Fund
Healthcare Reform
— Will it Happen?
7
 Fifth Third Bank | All Rights Reserved | For Internal Use Only
The State of Charitable Giving

Economic Downturn and Its Impact on
Donors
— Less Dollars to Give
— Many Donors have Narrowed Their Focus
— Estate Tax Uncertainty has created Donor
Uncertainty
— Volunteerism Up
— Increase of Non Cash Assets
8
 Fifth Third Bank | All Rights Reserved | For Internal Use Only
The State of Charitable Giving

Economic Downturn and Its Impact on Not for
Profits
— Less Dollars/Higher Demand on Programs
— More Collaborations
— More Mergers
— Staff Reductions
— The New Norm
9
 Fifth Third Bank | All Rights Reserved | For Internal Use Only
The State of Charitable Giving

Areas of Concern to Watch:
— Overall Tax Reform
— Minimum Payout Requirements for Endowments,
Donor Advised Funds, and Supporting Orgs
— IRS Inquiries into Endowment Spending, Executive
Salaries and Unrelated Business Income Tax
— Paying for Healthcare Reform
— Budget Cuts to Critical Social Service Programs
— The Idea that Private Funds Can Replace
Government Funds
10
 Fifth Third Bank | All Rights Reserved | For Internal Use Only
Questions & Answers
11
 Fifth Third Bank | All Rights Reserved | For Internal Use Only
Contact Information
Heidi B. Jark, Esq.
Vice President & Manager
The Foundation Office at Fifth Third Bank
38 Fountain Square Plaza MD1090CA
Cincinnati, OH 45263
P: (800) 336-6782 ext. 4397/(513) 534-4397
F: (513) 534-0960
E: Heidi.Jark@53.com
12
 Fifth Third Bank | All Rights Reserved | For Internal Use Only