Broker Check

Donating... the Smart Way.

Tactical Giving - Rick Mantei shares his secrets to donating

"Everyone is looking for a good deal." Rick Mantei of Cola Wealth Advisors had these words of advice for donors and members of the Fellowship of Christian Athletes at a recent event. While many were topics discussed, the most impactful was the opportunity to donate in a way that helps both. Rick is a huge supporter of the Fellowship of Christian Athletes, saying that he would be nothing if it weren't for programs such as these throughout his childhood.

Rick is extremely active in the Midlands, and over the years has donated to various causes, including the FCA, Rick and his clients, he explains, chooses to donate using tax-advantaged methods. This is done through three primary methods: donating an appreciated asset, gifting a required minimum distribution, and utilizing a donor advised fund.

When an appreciated asset is donated, a charity receives an item (real estate, stock, etc.) that was purchased years prior at a lower basis. The charity gets the full value of the asset, and the donor gets a corresponding tax write-off.

A required minimum distribution applies to individuals over 70.5 with a pretax retirement account. Rather than pulling money out and getting taxed, individuals can send a check directly from their account to a charity of their choice. This avoids taxes, giving the charity a larger sum than if it were taxed first.

The method Rick was most excited about was donor advised funds. They allow the donor to place an amount of assets into an account for the sole purpose of donating it in the future. The donor gets the entirety value as a tax write-off the year an asset is placed in the account, while maintaining control over the money. Rick explained that this was ideal for those in high tax brackets with the intention of donating in the coming years.

Rick Mantei is the owner and founder of Cola Wealth Advisors. Securities and advisory services offered through Centaurus Financial, Inc. Member FINRA and SIPC, a registered Investment Advisor. With the help of Kathy Nishnic, Atul Makharia, Lisa Mantei, and Cindy Chiellini, the team assists more than two thousand families in achieving their financial goals. Please visit our website for more information: