Donor-Advised Funds. Morgan Stanley Global Impact Funding Trust (GIFT)

Transcription

1 Donor-Advised Funds Morgan Stanley Global Impact Funding Trust (GIFT)

2 A Donor-Advised Fund Can Simplify Your Philanthropic Giving A donor-advised fund (DAF) is a private fund administered by a third party and created for the purpose of managing charitable donations on behalf of an organization, family or individual. Gifts to DAFs can be in the form of cash, marketable securities and other assets deemed acceptable to the DAF. Using a DAF, an individual, family or organization can make non-binding recommendations for donations from contributed assets with minimal expense or administrative burden. 2

3 How a Donor-Advised Fund Works When you give assets to a DAF, you re actually making an irrevocable donation to the public charity that operates the fund. These assets are used to fund an account in your name, and you receive a potential charitable tax deduction. 1 The public charity is responsible for managing assets on behalf of all its donors. When you decide to give to a specific charity, you do it by making a non-binding recommendation for a grant. Your donor-advised fund has final discretion to distribute grants from your account based on your requests. 2 Charitable Deduction CHARITY DONOR DONOR- ADVISED FUND Grant CHARITY Gift (Public Charity) CHARITY 1. The maximum deduction for a gift to a donor-advised fund, as a public charity, is limited to 50% of adjusted gross income (AGI); deductions exceeding AGI limits may be carried forward for up to five years. 2. Grants can be directed to US organizations that are tax-exempt public charities, US religious houses of worship, and US-qualified foreign charitable organizations. At an additional cost, other domestic and foreign organizations that do not qualify as US public charities can be considered. 3

4 Introducing the Global Impact Funding Trust (GIFT) Morgan Stanley GIFT is an independent section 501(c)(3) organization. Key facts about Morgan Stanley GIFT: Over 15 years of operation and experience; established in August 2000 More than 3,400 accounts, collectively valued over $850 million as of 12/31/2015 Total grants to charities have exceeded over $1 Billion in assets since inception Led by a Board of Directors including seasoned professionals from both within Morgan Stanley and outside Morgan Stanley Investment platform professionally managed by Morgan Stanley Wealth Management Back office administration provided by Drinker Biddle & Reath LLP, an unaffiliated international law firm recognized as a leader in philanthropy and nonprofit organizations 4

5 You Can Do Many Things Through Morgan Stanley GIFT Receive professional investment advice on your charitable gifts. Contribute using a wide variety of cash, and marketable or restricted securities. With prior approval, contribute illiquid assets such as real estate, art, grain, or private company stock. Help coordinate your giving into succession planning. Make anonymous contributions. Conduct research on areas of charitable interest and specific charities. Develop a program of giving, or transfer a private foundation to a simpler gifting solution. Mitigate capital gains tax on gifts of appreciated securities and other assets. Reduce your estate tax liabilities. Establish a longterm charitable giving strategy that reflects your passions, vision and values. 5

6 Key Investment Features of Morgan Stanley GIFT Contributions to Morgan Stanley GIFT are invested in Consulting Group's Select UMA program, a unified managed account platform that combines separately managed accounts, mutual funds and exchange-traded funds in a diversified, cost-effective portfolio. You have a choice of four traditional risk-based or two Investing with Impact portfolios as well as a money market fund. You may also split the money among the investment options. PLATFORM FEATURES INCLUDE LEVERAGING: Asset allocation strategies developed by the Morgan Stanley Wealth Management Global Investment Committee Investment managers and products analyzed by Morgan Stanley Wealth Management s Global Investment Manager Analysis (GIMA) team for possible inclusion in the Select UMA program Disciplined portfolio construction provided by the Custom Solutions Team Professionally managed investment strategies featuring broad diversification and automatic rebalancing 6

7 Morgan Stanley GIFT Makes Giving Simple Through Morgan Stanley GIFT, you can recommend grants to: US organizations that are tax-exempt public charities US religious houses of worship US-qualified foreign charitable organizations Other domestic and foreign organizations that do not qualify as US public charities 1 1. Additional cost to the donor for electing to grant to non-us public charities. 7

8 Morgan Stanley GIFT Makes Giving Simple Morgan Stanley GIFT provides a comprehensive Donor Portal where you can suggest a grant by completing an online application or you can provide grant information to your Financial Advisor team or our Administrative Help Desk. Morgan Stanley GIFT includes these comprehensive administrative services: Confirmation of all grants made and gifts received Quarterly fund statements listing gifts, grants, fees and investment performance Documentation needed to report contributions to the IRS Information about qualifying nonprofit organizations 8

9 Disclosures Morgan Stanley GIFT, Inc. is an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and Morgan Stanley Global Impact Fund Trust is a donor-advised fund. Various divisions of Morgan Stanley Smith Barney LLC (the Firm) provide investment management and certain administrative services to Morgan Stanley GIFT. Although the statements of fact and data in this presentation have been obtained from, and are based upon, sources that the firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed. This presentation is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results. Morgan Stanley Smith Barney LLC, its affiliates, and its employees are not in the business of providing tax or legal advice. Investors should seek advice based on their particular circumstances from an independent tax advisor. For more information about GIFT, please contact your Morgan Stanley Financial Advisor Morgan Stanley Smith Barney LLC. Member SIPC. Consulting Group is a business of Morgan Stanley Smith Barney LLC. CRC (2/16) 9