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Welcome to the SoCalCGP Newsletter. The newsletter provides links to this page. Please see below for the items that appeared in the December 2024 issue.

SoCalCGP: A Fantastic Return on Investment!

by Cris Lutz, CSPG, CAP, SoCalCGP President

Planned giving brings philanthropic dreams to life—helping nonprofits achieve their missions and enabling donors to leave lasting legacies. Whether you’re a nonprofit professional in healthcare, education, climate justice, the humanities, or faith-based work—or a trusted advisor like a wealth manager, estate attorney, private banker, art appraiser, CPA, or consultant—your work plays a vital role in shaping the future of philanthropy.

I first joined the Southern California Council of Charitable Gift Planners (SoCalCGP) over a decade ago, back when we were known as the Partnership for Philanthropic Planning, Los Angeles. The return on that investment—for my own professional growth and for my institution, The Huntington—has been extraordinary. Being a part of SoCalCGP’s growing network has allowed me the opportunity to connect and learn from colleagues across the region doing amazing work for their communities.

Guided by SoCalCGP’s core values of inclusion, community, integrity, education, and leadership (which our board formally adopted during our retreat this October), we provide the tools, actionable insights, and professional development that enhance your expertise and support your success in this field. Just as important as staying up to date on trends, tax changes, and strategies, we offer opportunities to build meaningful connections with colleagues throughout Southern California.

Together, we’re building community, advancing missions, and helping to make lasting impact through the power of charitable gift planning. If you’re not yet a member, sponsor, or volunteer, I hope you’ll join us today!

Trump Version 2.0—What Does it Mean for Tax Policy?

by David Trailov, Senior Associate & Reynolds Cafferata, Partner

With Donald Trump poised to be the 47th President alongside Republicans holding slim majorities in Congress, what type of changes to tax policy are likely to occur during his second term? 

It is likely Congress will extend key provisions of the Tax Cuts and Jobs Act (TCJA), including the reduction of individual tax rates, the elimination of the personal exemption, and the doubling of the standard deduction. The Trump victory also likely prevents the overhaul of the estate and gift tax supported by Vice President Kamala Harris. However, the full extension of the TCJA or the implementation of Trump’s other tax proposals is not a foregone conclusion, as various legislative challenges remain, even with Republican control.

In the House, where Republicans maintain the majority, Trump’s tax proposals are expected to pass, as only a simple majority is needed. In contrast, in the Senate 60 votes are required to overcome a filibuster. Under the Byrd Rule, provisions that aim to make tax cuts permanent require 60 votes. With Republicans holding a 53-47 majority, achieving the necessary 60 votes is unlikely. 

As a result, Trump’s tax proposals are likely to advance through Reconciliation, a budgetary process that allows the Senate to pass a bill with a simple majority of 51 votes, bypassing the 60-vote requirement. However, the Byrd Rule dictates that any tax cuts passed through Reconciliation must be related to the budget and be offset by either tax increases or reductions in spending. The rule also effectively limits tax cuts to a 10 year duration. 

Trump’s proposed tax changes focus primarily on further tax reductions. Notable proposals include a further lowering of the corporate tax rate, eliminating income taxes on tips and overtime, repealing the State and Local Tax (SALT) deduction cap, and extending the TCJA, including the increased estate and gift tax exemption and ceiling for charitable contribution deductions from 50% to 60% of adjusted gross income (AGI).

Should Congress fully extend the TCJA, the projected revenue loss over the next decade exceeds $4 trillion. Reinstating the unlimited SALT deduction further exacerbates this shortfall. While Trump suggests imposing tariffs on foreign goods to help offset the revenue gap, it is unlikely that tariffs alone will fully offset the deficit. As such, some provisions of the TCJA may not be extended.

One such provision at risk is the charitable deduction ceiling increase from 50% to 60% of AGI for cash contributions. While extending this benefit to include appreciated property could increase its utility, if revenue concerns persist, Congress may not make any changes and allow the ceiling to revert to 50% of AGI. 

Although many expect the increased estate and gift tax exemption from TCJA to be extended, revenue concerns may lead to lower limits or an extension of the higher limits for a period shorter than 10 years. Taxpayers likely do not need to be concerned that the exemptions will be reduced sooner than the end of 2025, however.

Many of the TCJA provisions are already set to expire. It should not be overlooked that Republicans may decide to spend their political capital on other goals of the administration and allow some provisions to expire. Deficit hawks in the thin majorities may force elimination of some of Trump’s proposed tax cuts. So, while Trump’s victory with Republican control of both houses of Congress rules out a number of Democratic tax policy changes for at least a few years, it’s less clear which Republican proposals will ultimately be enacted and for how long.

This article was provided by SoCalCGP Gold Sponsor, Rodriguez, Horii, Choi & Cafferata LLP.

SoCalCGP Member Profile: Meet Jennifer Maqueda

Marketing & Communications Manager at Clifford Swan Investment Counselors

Jennifer joined SoCalCGP (then PPPLA!) and Clifford Swan in 2013 and quickly found SoCalCGP a welcoming and supporting environment for a newcomer to the world of planned giving. As a volunteer for the Membership Committee, she now helps others discover the value of SoCalCGP.

At Clifford Swan—which offers comprehensive turnkey services that include investment management, administration, and donor support to organizations with planned giving programs—Jennifer is passionate about educating others. She views money as a tool and financial literacy as the means to use financial resources to create lasting impact. This perspective fuels her enthusiasm for developing presentations on charitable giving for the donor bases of the organizations Clifford Swan serves. She also shares valuable insights with charities, from legislative updates to investment outlooks.

Outside the office, Jennifer supports financial literacy as a program facilitator for the Linda Davis Taylor Financial Literacy Program at Scripps College, where she majored in economics and psychology. Raised in Sierra Madre, Jennifer and her husband now live there with their two young daughters. When she’s not home, she’s likely visiting family in Spain and northern Michigan. Fun fact: Jennifer is left-handed and has an identical twin!

Frustrated by Inherited IRA Delays? There’s Something Proactive You Can Do

by Patience Boudreaux, MBA, CSPG, CFRE

At some point in our careers, we’ll all experience the same challenge related to inherited IRAs. Your dedicated supporter passes and has named your nonprofit, yet the administrator of the IRA is requiring your organization to set up an account with them to receive the funds… a process that is time consuming and invasive, as it often requires leaders at your organization to disclose their personal social security numbers. Not all administrators require this, but those that do are some of the largest in the county.

It doesn’t have to be this way, and common sense is influential to anyone who hears of these challenges from the nonprofits. So, I’d like to suggest a New Year’s Resolution for you: aid congressional staff in understanding this challenge by participating in advocacy for the RIFT Project.

The National Association of Charitable Gift Planners (CGP), with which Southern California Council of Charitable Gift Planners maintains an affiliation, has engaged help to enable all of us in the gift planning community to connect with and share our experiences with congressional aids. The firm, Integer, will guide you through the process, doing an orientation call with you, pairing you with fellow gift planners so you have a partner for the conversation as appropriate, scheduling the calls with the congressional offices, and joining in to ensure everything goes smoothly. You can learn more about this effort from CGP’s recent blog post. I’ve participated in this effort and valued the ease of the experience.

The needed changes are common sense, and when our members have shared their real challenges, we’ve gained advocates who have the power to lobby for actual changes in policy. If you’ve ever wanted to make a meaningful difference in how charitable estate planning operates in the United States, this is your chance to be part of the solution. I hope you’ll join me by completing this form to raise your hand and make a difference.

 

Announcing the Pathway Scholarship!

The Membership and Inclusion Committees of Southern California Charitable Gift Planners (SoCalCGP) are excited to launch the Pathway Scholarship! The objective of the scholarship is to increase accessibility to this professional association for the purposes of professional development, education in charitable gift planning, and networking. Each scholarship will cover membership and all general meetings for 12 months/one year.

Philanthropy professionals serving smaller organizations, particularly those that serve underserved communities; executive directors of nonprofits that may not have dedicated fundraising staff; early-career gift officers and affiliated advisors (CPAs, financial advisors, realtors, etc.); and students who wish to explore careers in charitable gift planning are all encouraged to apply.

Click here to access the application.

 

Register Today for the January General Meeting!

Thursday, January 16, 2025 @ Braille Institute 

SESSION 1 | 9:00 AM - 10:00 AM 
 
Navigating Longevity: Solutions for Aging Charitable Life Estate Gifts

with Elizabeth Bawden, Withers Bergman LLP, Partner
 
As life expectancies increase, donors who gifted their homes to charity while retaining a life estate and have lived longer than expected are more frequently approaching those charities for solutions as they face changing needs for housing, cash, and other changes in circumstances. This presentation will explore strategies for charities working with these donors. It will cover financial solutions such as converting life estates into current gifts, leasing the property for income, and selling the property in collaboration with the donor, as well as many of the tricky non-financial issues and risks that commonly arise for charities navigating these situations.

SESSION 2 | 10:15 AM - 11:15 AM 
 
Nudging for Good: The Science of Donor Behavior

with Jeff Kreisler, Managing Director, Head of Behavioral Science and Jamie Hackleman, Executive Director
 
While philanthropy can be deeply rewarding, donors often face barriers both to making rational donation decisions and to following through on those choices. Jeff Kreisler, J.P. Morgan Private Bank's Head of Behavioral Science, will reveal the research on how donors think about giving and best ways to help givers achieve their goals and giving plans.

REGISTER HERE