Telemus Charitable

    At Telemus, we practice Financial Life Management, an approach that embodies how your entire life works with your current and future financial resources. We believe that helping our clients reach their financial goals means integrating all areas of their financial life, and charitable giving is a key facet of the broader wealth management solutions we build for our clients.

    Telemus Charitable helps people create a charitable strategy to maximize the impact of their giving and leave a financial legacy they can be proud of.  Charitable giving is one of many ways you can use your wealth. And like any other intended use for your wealth, your charitable giving ties back to your overall financial
    strategy and goals.

    Why do we give?

    There are a number of reasons why we give.  We give because we can. We give because we want others to benefit from the blessings in our lives. We give to show our gratitude. We give so that our success can have a greater meaning. We give to strengthen our bonds within our community, to leave a meaningful legacy for future generations of our families.


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    Find the right giving strategies for your unique situation

    Below are seven common scenarios that we help people navigate. Click on the option that sounds most like you. We will show you the gifting strategies that may be the right fit, and you can scroll to the next section of this page to learn more about each gifting strategy mentioned.

    I am preparing to sell all or a portion of my business

    • Gifting Appreciated Assets

    I’m not spending my RMDs each year in retirement

    • Charitable IRA Maximization

    I have more money than I need in retirement

    • Donor Advised Fund
    • Gifting Appreciated Assets
    • Charitable Lead Trust
    • Charitable Remainder Trust
    • The Family Foundation

    I am focused on multi-generational wealth planning

    • Donor Advised Fund
    • Gifting Appreciated Assets
    • Charitable Lead Trust
    • Charitable Remainder Trust
    • The Family Foundation

    I have substantial short or long-term gains in my portfolio

    • Donor Advised Fund
    • Charitable Lead Trust
    • Charitable Remainder Trust

    I am activating a non-qualified stock portfolio

    • Donor Advised Fund
    • Gifting Appreciated Assets

    I have a life insurance policy that is not needed

    • Life Insurance Evaluation

    Learn more about each gifting strategy

    Charitable IRA Maximization

    For IRAs with large balances, income and estate taxes can reduce the overall value of the account by 70% or more upon the owner’s death. Charitable IRA Maximization allows IRA owners to have RMDs of up to $100,000 paid directly from their IRA to a charitable organization, without the distribution counting as income for tax purposes.

    Upon the owner’s death, the IRA is bequeathed to the charitable organization of their choosing. As a result, their estate receives a full estate tax deduction for the bequest, and since charities do not pay taxes on gifts made from “income in respect of a decedent” (untaxed income that was never paid during the IRA owner’s life), both estate and income taxes on the IRA are eliminated.


    • Charitable distributions allow donors to get both the standard deduction and the charitable contribution deduction without any AGI limits
    • IRA owners can significantly reduce the overall estate tax bill for their heirs
    • Using some of the RMD amount to fund premiums on a life insurance policy can give your heirs a larger payout tax-free


    • Only an ideal strategy if the IRA is not needed to help fund retirement
    • If over $100,000 is distributed, the excess is still subject to income tax
    • Withdrawals greater than the RMD amount (if less than the $100,000 allowable maximum) can reduce the value of the IRA

    Donor Advised Fund

    Donor Advised Funds (DAFs) offer a way to use your estate to support philanthropic causes. DAFs are funded with cash, securities, and other assets, and contributing to a DAF allows you to take a tax deduction at the time of the contribution. Upon your death, the assets are donated to the charity of your choosing.

    With a DAF, you can deposit assets to be donated to charity over time. The account is managed by a sponsoring organization, and as the donor, you recommend how to invest those assets and where they should be donated (almost any IRS-qualified public charity can be a recipient).


    • No capital gains taxes on assets placed in a DAF; tax deductions are immediate and can be taken on current market value of assets rather than their value at the time of purchase
    • Assets placed in a DAF are exempt from estate taxes
    • DAFs offer the option to donate any remaining assets in your fund to the charity of your choice upon your passing
    • Can be used to purchase life insurance as a means to endow gifts


    • The fund—not the donor—has the final say on how the assets are distributed
    • Many DAF sponsors charge high fees for managing the accounts
    • Contributions to DAFs are irrevocable

    Gifting Appreciated Stock/Assets

    A gift of appreciated stock or other assets is a great way to support a charitable organization while also receiving significant tax benefits. Appreciated stock is subject to a maximum 20% capital gains tax, but by donating that stock you can avoid the capital gains tax—and still deduct the full fair-market value of the donated stock from your income taxes.

    Donating appreciated stock can also help reduce future capital gains and therefore lower your future tax burden. If you have a stock that you believe will continue to increase in value, you can donate the appreciated shares to charity and buy new shares at the current (higher) price, thereby resetting the cost basis—and if the stock does go down, your higher cost basis means a larger write-off for tax purposes.


    • Helps reduce portfolio concentration risk without having to liquidate and incur a significant tax event
    • Donating stock directly (rather than cashing out and donating the proceeds) means the charity receives a larger overall donation
    • Allows the donor to reset their cost basis and reduce future capital gains taxes


    • This strategy is not as effective if the appreciated stock is less valuable than when you bought it, as you lose the option to sell the stock for tax-loss harvesting purposes
    • Smaller charities may not have brokerage accounts, and the cost of liquidating the donated shares can cut into your donation
    • Donors must itemize their tax return in order to receive the income tax deduction for donated shares

    Charitable Lead Trust

    With a Charitable Lead Trust or “CLT,” donors contribute cash or other assets to the trust, and the trust makes regular payments to the charitable organization(s) of your choice for as long as the trust is set up to operate.


    • Gifted assets are no longer in your estate
    • You can generate an income stream from the proceeds of the CLT
    • You receive a partial tax deduction for donated assets, along with avoiding capital gains tax on appreciated assets that have been gifted


    • Once it has been created and assets donated, it is very difficult to reverse or “undo” the process
    • You no longer have legal control of the assets donated to the CLT
    • In some cases, distributions may be taxed as ordinary income

    Charitable Remainder Trust

    Charitable Remainder Trusts (CRTs) operate inversely to CLTs, in that non-charitable beneficiaries receive regular payments throughout the life of the trust. Upon death or dissolution, the remainder is donated to the charitable organization(s) of your choosing.


    • Allows for a steady income stream for a set term of years or for life
    • You receive an immediate income tax deduction on the amount donated
    • Helps reduce or even eliminate capital gains, gift, and estate taxes


    • Assets that are passed to charity do not pass to heirs upon your death
    • Transfers to a CRT are irrevocable
    • Terms of the trust cannot be changed once established

    The Family Foundation

    Private family foundations are a great way to establish a philanthropic legacy, and the extra flexibility they offer makes them a particularly attractive option for families who want to ensure their donations can go where they will do the greatest good.


    • Allow for organized, targeted giving to those most in need
    • Donors can also be trustees in the foundation, allowing them to retain control of how their donations are used
    • No capital gains tax on appreciated stock, and donors can claim a charitable deduction for the full market value of that stock as well


    • Setting up a family foundation requires a significant commitment of time and money, particularly legal and accounting fees
    • Private family foundations are subject to a 1.39% annual excise tax on net investment income
    • Recordkeeping and regulatory requirements can be onerous

    Resource: Charitable Giving & Your Financial Legacy

    When you pass away, your wealth will go to taxes, your loved ones, and the organizations you care about. In this resource, we show you how charitable giving can help maximize the financial legacy you leave behind.

    Ready for a personalized consultation?

    Connect with Ari Fischman, CFP®

    As a Financial Life Advisor, Ari looks forward to being able to offer holistic financial planning and improved investment management solutions to his clients. In his spare time, Ari enjoys spending time with his wife Monica and their 3 kids. They enjoy traveling together and staying incredibly active in the outdoors. Ari continues to manage Fischman Insurance Group as an independent insurance agency.


    Call: (248) 827-0518



    The information provided is general and educational in nature and should not be construed as personalized investment, tax, or insurance advice. You should consult with your own tax or insurance advisor regarding your personal situation. The statements contained herein are based solely upon the opinions of Telemus Capital, LLC. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice. Information was obtained from third party sources, which we believe to be reliable, however Telemus Capital cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Insurance and investment decisions should always be made based on the client’s specific financial needs, goals and objectives, time horizon and risk tolerance. Current and future portfolio holdings are subject to risk. Risks may include interest-rate risk, market risk, inflation risk, deflation risk, currency risk, reinvestment risk, business risk, liquidity risk, financial risk and cybersecurity risk. These risks are more fully described in Telemus Capital’s Firm Brochure (Part 2A of Form ADV), which is available upon request. Telemus Capital does not guarantee the results of any investments. Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, and may lose value. Advisory and Insurance services are only offered to clients or prospective clients where Telemus Capital and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Telemus Capital unless a client service agreement is in place.