The Oklahoma Bar Journal November 2024

anticipated size of the gift. Charitable organizations appre ciate notification when allowed by the donor because they are better able to track gift expectancy calculations, as well as thank and steward the donor appropriately. If the clients would like the attorney to disclose this information, the attorney should have the clients sign a consent to the disclosure specifying the level of detail to be released. 15 Charitable giving is also a great way to minimize or elim inate the federal estate tax. In 2017, the passage of the Tax Cuts and Jobs Act increased the gift and estate tax exemption to $11.18 million, which has since increased to $13.61 million per person for individuals dying in 2024. 16 This generous estate tax exemption is slated to sunset at year-end 2025. 17 On Jan. 1, 2026, unless Congress takes action to extend the current exemption, the exemptions will revert to the inflation-adjusted rates outlined in 2017, approx imately $7 million per person ($14 million for married couples).

Another commonly restricted gift type is medical research, typically focusing on support for a specific condition battled by the donor personally or by a loved one. WHY GIVE? Donors typically have multiple rationales for making testamen tary charitable gifts. The driving force for most donors, however, remains the desire to bolster a mission that matters to them or honor a moral conviction to give back. Many donors also feel compelled to give in the honor or memory of a loved one, marking the legacy of the individual or family. Some clients are partially motivated by the recognition of naming rights or membership in certain giving societies. It is imperative attorneys under stand if clients prefer to remain anonymous before and after their passing or if and when they would like the future charitable benefi ciaries notified of the gift. It is also vital to identify whether the donor wants to disclose the intent to give only or to share the approximate

is willing and able to honor the donor’s intent. The drafting attor ney should have an explicit provi sion for what should happen in the event the funds cannot be used for the donor’s specific purpose, temporarily or permanently, or if the charity ceases operations. For example, the charity may conserve the unused funds in a separate rollover account for future distri bution for a different purpose or reinvest the unused amount into the corpus so that future distri butions are incrementally larger. An alternate charitable beneficiary may also be named if the charity ceases operations. Motivations for restricted gifts vary and often derive from an emotive or personal prompt. Occasionally, restricted gifts stem from a distrust of current or future management. For example, the donor trusts the current leader ship but is uncertain whether the same level of confidence would exist with future leadership. Other donors feel passion for a partic ular program or desire to benefit a particular geographic region, often their hometowns. Others have witnessed unrestricted gifts be deployed in what they inter pret as an objectionable manner, and although nothing unethical or illegal transpired, the donors desire complete control over what their personal gift will and will not fund. Other donors fixate on the funds being directed purely to programming and feel adamant that not a penny be allocated to an administrative purpose. Scholarships are one of the most frequently restricted gift types, with donors often expressing a passion for a certain academic institution, particular student demographic or area of study.

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

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THE OKLAHOMA BAR JOURNAL