Business of Giving Thavam

BUSINESS OF GIVING

April 4, 2009 San 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

Global Public Health is Complex Economic factors

Biological factors

HEALTH

Social/cultural factors

Political factors

How to Give back?

Get involved!

Spread the word!

We make a living by what we get, but we make a life by what we give

Winston Churchill

More than 1,000 volunteers in 25 States!

Ways you can Give…  Fun and Fundraising: Golfing, Walk-aThon, social events, etc.  Grant writing  Help network with other Charities or NGOs You 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 IMHO 1. Monetary Donations: Check, Direct Debit, and online 2. Appreciated Stocks 3. Pension Plans 4. Whole Life Insurance 5. 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 Vision •

PUT YOUR CHARITABLE VISION TO WORK WITH CURRENT INCOME TAX DOLLARS.

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CONTINUE YOUR CHARITABLE MISSION WITH ESTATE TAX DOLLARS

UNDERSTANDING YOUR TAXES 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 Planning • WHAT: ANY ASSET BECOMES AN ESTATE UPON DEATH of both spouses • WHY: TO AVOID PROBATE AND SAVE TAXES • WHEN: NOW

Probate Court •

PROBATE COURT: SPECIALIZED COURT THAT ONLY CONSIDERS CASES THAT DEAL WITH THE DISTRIBUTION OF DECEDENT’S ESTATE

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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 Will •

A LIVING WILL IS NOT A SUBSTITUTE FOR A FAMILY LIVING TRUST

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

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A LIVING WILL DOES NOT AVOID PROBATE COURT

Save Approx. 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 Exclusions •

A GIFT HAS TO BE GIVEN BEFORE DEATH BY AN INDIVIDUAL OR FROM THEIR LIVING TRUST

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

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

Goals of IMHO

Health Education Self Reliance in Health Empowerment “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 Foundation •

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

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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 Death

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

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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 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.

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

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

Charitable Private Family Foundation

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

Save on Current Taxes through Business of Giving

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

Margaret Mead

THANK YOU!