Scott Thomas, ChFC®, CAP®, CKA®

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511 N. Maitland Avenue
Maitland, FL 32751

Phone:

407-644-9411

Blog

Nonprofit Cash Mgt 2.0

Nonprofit Cash Management 2.0Cash Management 1.0 is covering the basics of alignment of income to expenses and tracking and mapping it. Budget basics are core to all responsible businesses.In 2.0 you have accumulated a cash nest egg with excess and now need to think about improving the return on your cash. Can you bypass the bank and go directly to government for fully back notes and bonds and do it efficiently and practically? It depends on few factors. First, are you at place where cash exceed
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Qualified Charitable Distribution From IRA-Not Always Easy

Not All IRA Custodians are Friendly About Qualified Charitable DistributionsThose individuals age 70 ½ and old can give directly from IRA to Qualified Charity and it counts towards their required minimum distribution aka RMD and it will not be counted in taxable income.   This can be significant strategy especially with higher Standard Deductions when calculating itemizing tax potential.  Couple has $5,000 in property taxes and likes to give $5,000 to annual to charity. The
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Private Foundation Quick Audit

Private Foundation Quick AuditRecently I was driving and noticed a new model Supercar with crazy over the top performance.  Inside was a very mature woman and it’s highly unlikely she would ever drive the car as fast as her age.  I then thought about another conversation with a family regarding their Private Foundation. Between their bankers, trustees, legal and accounting fees they consume about 2.5% of the total corpus each year.  They only give to qualified charities and
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The Other 92%

The Other 92%Did you know that only about 8% of assets in the United States is cash? So the other 92% is what? Not cash or stocks, bonds, real estate, annuities, mutual funds, IRA, 401K, life insurance, business interest.The picture here depicts that vast majority of nonprofits all gathered around the cash fishing hole and yet only 8% or less of assets reside here.  Cash can mean checking. savings, money markets accounts.The Other 92% presents unique opportunites and challenges that we love
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Did You Know Your Charitable Structure Could Be Changed?

You set up a community foundation account years ago and the family moved and can rollover from one community foundation to another community foundation or a donor advised fund.  Or you set up and donor advised fund or multiple donor advised funds and now would like to consolidate or move to better service model or lower cost platform.  You can move a Donor Advised Fund to another Donor Advised Fund or roll to community foundation.  If you set up private foundation you usually can
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Four Types of Pensions

Four Types of PensionsOrigin of pension1325–75; Middle English (< Old French pensïon) < Latin pēnsiōn- (stem of pēnsiō) a weighing out, hence, a paying out, installment paying, equivalent to pēns(us) (past participle of pendere to weigh out, pay by weight, equivalent to pend- verb stem + -tus past participle suffix, with dt > s) + -iōnFirst type is
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Two Hero's In Philanthropy Narrative

Two Hero’s In Philanthropy NarrativeScott Thomas, Chartered Advisor in PhilanthropyThere are two heroes in the story of philanthropy and all the other roles support the two heroes.  First hero is the “person or cause being served. “ Not the nonprofit organization or its staff and administration.  The second hero is the funder also known as donor and or volunteer.Nonprofit is at best pass through entity for funding and facilitating the services the persons or cause bei
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Universities and Hospitals tend to get the largest bequests. Why?

Several reasonable conclusions but not a single reason alone, rather overall stewardship of organization and its donor base.Applying excellence to organizations finances- proper accounting and best practices including cash management and investment committees.  Another area is systems around the donor communication and reporting.  Of course the emotional payback of business success or given another chance at life due to great health experience.  Some say the biggest reason is cons
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Want to Do Some Really Kind Planning For Your Family?

Think of deferred income tools like IRA and non-qualified annuities at the time of your death as Cancer.  Why?  Here is the painful truth about “income with respect to decedent” or IRD as tax people call it.  While the death taxes are huge now millions so few have to plan for death taxes anymore, however many have real issues with IRD.Here is problem illustrated and one possible solution.  Please seek out professional advice on this complex subject.Eileen buys $50
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Cut Out the Middle Man or Disintermediation

Disintermediation, in finance, is the withdrawal of funds from bank, to invest them directly. Generally, disintermediation is the process of removing middleman or intermediary from future transactions. Disintermediation is usually done to invest in instruments yielding a higher return. Buy US Treasury direct instead of getting lower rates on money market funds and savings.Example: $2,000,000 in cash invested with local banker and earns .15% the banks rate for cash savings and money market a
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What is a QLAC? Could This Strategy Work for You?

This a type of deferred income annuity (DIA) allowing a contract holder to purchase future lifetime income with a portion of their qualified account savings (401k, IRA, 403b etc.). The contract holder can exclude the value of that annuity from their annual required minimum distributions (RMD) calculation.Think of it as carving out up to 25% of IRA value or max $125,000 for an individual and they could elect to defer to any age up to age 85 and not required to include this money in the RMD calcul
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Have Your Advisors Told You About New Tax Law and Capital Gains?

Have Your Advisors Told You About New Tax Law and Capital Gains? It is possible for many to harvest some capital gains in 2018 at ZERO Tax.  The calculations did not work like this in 2017.  It is possible for individual to sell as much as $52,000 and pay zero tax.  It is possible for married couple to sell as much as $103,000 and pay zero tax.  Amounts above would start to be taxed at 15% for only the portion above the free limits. Higher levels taxed 20% plus 3.8%.&nbs
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Naming Charity as Beneficiary On IRA

In general, naming a charity as the primary beneficiary will not affect required distributions to you during your lifetime. However, after your death, having a charity named with other beneficiaries on the same asset could affect the tax-deferral possibilities of the noncharitable beneficiaries, depending on how soon after your death the charity receives its share of the benefits.One possible solution is to carve out the amount or percentage of the IRA to a separated account number and name 100%
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Quick Quiz: Private Foundation aka PF & Donor Advised Fund in 2018

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Why Your Nonprofit Board Needs A Fiduciary Advisor

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Check the background of this financial professional on FINRA's BrokerCheck