BUSINESS OF GIVING

April 4, 2009San Jose, CA

Business of Giving

• What makes people give?

• Why give?• When in our life should

we give?• How much should we

give?

What is a Human Life worth?

• Is it worth more in the developed world than in a developing nation?

Global Health Crisis and MDGs

• 500,000 women die every year due to pregnancy related complications

• 30,000 children die every day due to preventable illnesses

Biological factors Economic factors

Social/cultural factors Political factors

HEALTH

Global Public Health is Complex

How to Give back?How to Give back?

Get involved!Get involved!Spread the word!Spread the word!

We make a living by what we get, We make a living by what we get,

but we make a life by what we givebut we make a life by what we give Winston Churchill

More than 1,000 volunteers in 25 States!

Ways you can Give…Ways you can Give…

Fun and Fundraising: Golfing, Walk-a-Thon, social events, etc.

Grant writing Help network with other

Charities or NGOsYou be the change you like to see in the

world!

No amount is too small….

• Sponsoring nutritional need of a child is US$ 0.75 per day per child!

• Supporting nutritional need of an IDP is US$ 15 per month!

Ways you can give to IMHOWays you can give to IMHO1. Monetary Donations: Check, Direct

Debit, and online2. Appreciated Stocks3. Pension Plans4. Whole Life Insurance5. Properties 6. Sri Lankan Pensions or Properties

No amount is too small….

• Cost of running mobile clinic in IDP camps is US$ 0.50 per patient visit!

• Cost of seeing a patient in a primary health care center is US$ 1 per patient visit!

No amount is too small….

• Providing maternal nutrition during pregnancy is US$ 100 per mother.

• Training a medical student US$ 75 per month.

Estate Planning

Mission Fueled by VisionMission Fueled by Vision• PUT YOUR

CHARITABLE VISION TO WORK WITH CURRENT INCOME TAX DOLLARS.

• CONTINUE YOUR CHARITABLE MISSION WITH ESTATE TAX DOLLARS

UNDERSTANDING YOUR UNDERSTANDING YOUR TAXESTAXES

DURING YOUR LIFE TIME YOU PAY TAXES: – INCOME TAXES– CAPITAL GAINS TAXES– SALES/USE TAXES– PROPERTY TAXES– GIFT TAXES…..

UPON DEATH OF BOTH SPOUSES YOU PAY:– ESTATE TAXES

Estate PlanningEstate Planning

• WHAT: ANY ASSET BECOMES AN ESTATE UPON DEATH of both spouses

• WHY: TO AVOID PROBATE AND SAVE TAXES

• WHEN: NOW

Probate CourtProbate Court• PROBATE COURT: SPECIALIZED COURT THAT ONLY

CONSIDERS CASES THAT DEAL WITH THE DISTRIBUTION OF DECEDENT’S ESTATE

• ANY INDIVIDUAL WHO HAS GENERALLY MORE THAN $100K IN ASSET VALUE WILL END UP IN PROBATE COURT UNLESS THEY HAVE CREATED THE FOLLOWING: 1. FAMILY LIVING TRUST

2. CHARITABLE PRIVATE FAMILY

FOUNDATION 3. CHARITABLE REMAINDER TRUST AND/OR

OTHER TRUSTS

Living WillLiving Will• A LIVING WILL IS NOT A SUBSTITUTE FOR A

FAMILY LIVING TRUST

• A LIVING WILL IS A COMPLEMENTARY DOCUMENT TO A FAMILY LIVING TRUST

• A LIVING WILL DOES NOT AVOID PROBATE COURT

Save Save Approx. 25% NOWApprox. 25% NOW

• BY CREATING A FAMILY LIVING TRUST AND/OR CHARITABLE FAMILY PRIVATE FOUNDATION YOU IMMEDIATELY SAVE APPROXIMATELY 25% OF YOUR ASSETS BY AVOIDING PROBATE COURT & LEGAL FEES

Gift Tax ExclusionsGift Tax Exclusions• A GIFT HAS TO BE GIVEN BEFORE DEATH BY

AN INDIVIDUAL OR FROM THEIR LIVING TRUST

• GIFT EXCLUSION IS $1 MILLION PER SPOUSE FOR 2009 THRU 2011 (DURING THEIR LIFE)

• GIFT CAN BE GIVEN TO MULTIPLE PEOPLE, BUT LIMITED TO $1 MILLION TOTAL FOR EACH SPOUSE

Goals of IMHOHealth Education

Self Reliance in HealthEmpowerment

“Give a man a fish and you feed him for a

day. Teach a man to fish and

you feed him for a lifetime”

Charitable Family FoundationCharitable Family Foundation

• CHARITABLE FAMILY FOUNDATION CAN BECOME THE BENEFICIARY OF NET ASSETS IN EXCESS OF ESTATE TAX EXCLUSION, WITHOUT PAYING ESTATE TAXES.

• YOUR ADULT CHILDREN OR FAMILY MEMBERS OR ANOTHER “PERSON” (AS TRUSTEES OF THE CHARITABLE PRIVATE FAMILY FOUNDATION) CAN DISTRIBUTE ANNUALLY TO THE CHARITY(-IES) OF YOUR CHOICE.

Filing IRS Form 706 within 9 Months of Filing IRS Form 706 within 9 Months of DeathDeath

• ALL ASSETS PASS THRU TO THE SURVIVING SPOUSE UPON THE 1ST DEATH: FILE WITH IRS, NO ESTATE TAXES.

• UPON 2ND DEATH, ALL ASSETS PASS THRU TO BENEFICIARIES OF THE FAMILY LIVING TRUST:* FILE WITH IRS, PAY UP TO APPROX. 45-

55% ESTATE TAXES ON THE VALUE OF ESTATE AFTER EXCLUSIONS (DEPENDS ON THE YEAR)

Coping with Estate TaxesCoping with Estate Taxes

• TO BUY LIFE INSURANCE FROM YOUR ASSETS IN THE TRUST TO PAY UP TO APPROX. 55% (CAN VARY) OF YOUR ESTATE (I.L.I.T.) TAXES.

• RETAIN APPROX. 45% (CAN VARY) OF YOUR ESTATE, OR

• RETAIN YOUR LIFE PROCEEDS AND DONATE YOUR ESTATE TO YOUR CHARITABLE PRIVATE FAMILY FOUNDATION AND PAY NO ESTATE TAXES.

Charitable Private Family Charitable Private Family FoundationFoundation

• DONATION TO A CHARITABLE PRIVATE FAMIY FOUNDATION:

YOU RECEIVE A WRITE OFF ON YOUR AGI (LINE 31, FORM 1040)CASH: 30%APPRECIATED PROPERTY: 20%

Public CharityPublic Charity

• DONATION TO A PUBLIC CHARITY:

YOU RECEIVE A WRITE OFF ON YOUR AGI (ADJUSTED GROSS INCOME)-LINE 31, FORM 1040CASH: 50%PROPERTY: 30%

Save on Current Taxes through Business of Save on Current Taxes through Business of GivingGiving

• DURING YOUR LIFETIME, TRANSFER ASSETS TO YOUR OWN CHARITABLE PRIVATE FAMILY FOUNDATION & SAVE ON INCOME TAX DOLLARS (CURRENT VALUE)

• UPON DEATH, ASSETS TRANSFER TO YOUR OWN CHARITABLE FAMILY FOUNDATION & YOU SAVE ON ESTATE TAX DOLLARS

What is the Purpose of Life?

Contact IMHO TODAY!Contact IMHO TODAY!

Never doubt that a small Never doubt that a small group of thoughtful, group of thoughtful, committed citizens can committed citizens can change the world. Indeed, it change the world. Indeed, it is the only thing that ever is the only thing that ever has.has.

Margaret MeadMargaret Mead

THANK YOU!