USA – TEXAS Law and Practice Contributed by: Perrin Clark and Meredith McIver, Ytterberg Deery Knull LLP
10.2 Common Charitable Structures Numerous strategies exist and are frequently used with respect to charitable planning and gifts, includ - ing, without limitation: • foundations (both operating and non-operating); • supporting organisations; • donor advised funds; • public charities; • social welfare organisations; • charitable lead trusts; • charitable remainder trusts; and • purpose trusts. Which strategy is most appropriate for a specific client is highly dependent on the client’s charitable intent and individual facts and circumstances.
of the donor’s adjusted gross income (AGI). The fair market value of marketable securities, real estate, and closely held assets is deductible up to 30% of the donor’s AGI. If making gifts to a foundation, these lim - its are reduced to 30% of AGI for cash gifts and 20% of AGI for gifts of marketable securities, real estate, and closely held assets; provided, the deduction with respect to gifts of real estate and closely held assets is further limited to the donor’s cost basis, rather than fair market value. These thresholds apply in the aggre - gate, meaning that the value of gifts that are more restricted counts towards the applicable thresholds with respect to gifts that are less restricted. For indi - viduals who itemise their charitable deductions, a tax deduction is available only to the extent that contribu - tions exceed 0.5% of adjusted gross income (AGI).
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