ABA Members Discuss Charitable Organization Issues With Treasury

ABA Section on Real Property, Trust & Estate Law
Charitable Planning and Organizations Group

Meeting with U.S. Department of Treasury

June 5, 2019

2:00 p.m. - 3:00 p.m (EDT)

ABA Participants: Kim Heyman, Turney Berry, Nancy McLaughlin, Bill Weeks, Phil Purcell, Jessie Cohan, Andrew Katzenberg, and Steve Swartz

Agenda

I. ABA Conservation Easements Task Force (30 minutes)

Nancy McLaughlin, Bill Weeks, Steve Swartz and Turney Berry

• Overview of Task Force Report published in RPTE Journal (attached)

• Background

• Safe Harbor Provisions for CE Deeds

• Recommended Additions and Clarifications of Law

• Managing Valuation Issues

• Recent Treasury Recommendations

II. IRC §4960 and Notice 2019‐09 — Tax on excess tax‐exempt organization executive compensation (15 minutes)

Turney Berry and Jessie Cohan

• Overview of Issues

• Discussion of request from Treasury about minimum contacts

• Discussion of other options

III. Computing AGI Limitation for gifts of cash when the donor also creates a charitable remainder trust or contributes to a donor‐advised fund (7 minutes)

Phil Purcell and Andy Katzenberg

• Overview of Issue

• Potential or clarifications that are available to Treasury

IV. Appraisal of surrendered annuity or unitrust interests when CRT holds marketable securities (7 minutes)

Kim Heyman, Jessie Cohan and Andy Katzenberg

• Substantiating a surrender of an annuity or unitrust interest of a CRT to the charitable remainder beneficiary requires an appraisal when the value of the gift exceeds $5,000 even if the assets are entirely cash or marketable securities

• Most gifts of marketable securities do not require an appraisal to substantiate the charitable deduction

V. Notice 2017‐73 on Donor‐Advised Funds (1‐2 minutes)

Phil Purcell

• Any updates?