We are honored to work with many talented and trusted attorneys, accountants, and financial advisors in our region as you strive to build charitable giving plans that meet your clients’ philanthropic goals and align with the latest laws, regulations, and best practices. Thank you for allowing the Delaware County Foundation to be a resource.
We understand that your relationships with your clients are your top priority. The key word is “relationship.” We are committed to helping you build, maintain, and deepen your connections with your clients as their “go to” advisors for wealth management, accounting, and estate planning across generations. We will never create obstacles between you and your clients; rather, we are here to assist you behind the scenes or in whatever capacity makes the most sense for you to deliver value to the individuals, families, and business you serve.
In today’s social impact culture, philanthropic planning isn’t just a nice to have. It’s a must have. To fulfill your obligations to serve your clients, you need to know the full range of everything the laws and regulations offer in establishing tax-savvy charitable giving vehicles that meet your clients’ goals. Our experts are here to help you! Philanthropy conducted through a community foundation meets the high standards of today’s best practices for achieving tax effective social impact objectives.
We would be pleased and honored to work with you. Whether you’re establishing a donor-advised fund for a private foundation client, or setting up a family foundation fund from scratch, or assisting a C-level executive with corporate giving strategies, we would love to be your partner.
PRO TIPS FOR ADVISORS
Planning tools to keep in your back pocket
The team at the community foundation understands that it sometimes can be hard to know where to start a conversation with a client about charitable planning. As you ask questions about the causes your clients love and how your clients intend to support the community in their estate plans, you’ll need quick access to a few go-to planning tools to inspire the dialogue. To help you do just that, we’ve assembled this list of a few of our favorite planning tools.
Qualified Charitable Distributions
Under the now permanent IRA charitable rollover laws, your 70 ½+ clients can direct up to $100,000 annually of required minimum distributions to charitable organizations, avoiding inclusion in taxable income. These distributions are called Qualified Charitable Distributions (QCDs). Although donor-advised funds can’t receive QCDs, there are still plenty of ways our team at the community foundation can help your clients take advantage of this tool for lifetime gifts. Also, your clients can name their donor-advised fund as the beneficiary of a qualified plan, which is still a tax-savvy bequest strategy.
Charitable Remainder Trusts and Charitable Gift Annuities
They’re back! Tax reform’s elimination of the Pease provision, which limited charitable deductions for high-income taxpayers, means your clients can better leverage a single, upfront gift to a charitable remainder trust or a charitable gift annuity.
Bundling . . . or Is It Bunching?
Whether you call it “bundling” or “bunching,” clients who want to maximize their charitable deductions under the new tax laws can benefit from making two or more years’ worth of charitable contributions in a single year. This helps push taxpayers over the itemizing threshold, where they can reap the benefit of deducting the full value of their donations. (Quick stat: Because of tax reform, just 10 percent of taxpayers itemized deductions in 2018, compared with 30% in 2017.)
Talking with your clients about charitable giving
A conversational approach using plain language can ease the barriers to discussing community impact with your clients.
When the time comes to discuss philanthropy with clients, advisors are often left wishing there were an easier way to discuss the results achieved with a charitable gift than simply to rely on aspirational statements such as “Let’s be sure your money makes a big difference.”
Ask Good Questions
The key to engaging in a more productive planning conversation with your clients is to ask more questions. Think about the long list of questions you ask clients when you are advising them on investment vehicles, or drafting estate planning documents! A few good questions can give a big boost to charitable planning, too. Here are a few of our favorites:
What problem raises your eyebrows the most when you read about it in the news?
What are the pieces of the puzzle that would need to come together to solve that problem in your community?
If there were one piece of that puzzle you could put into place with a magic wand, what would it be?
How We Can Help
The Community Foundation helps you build a plan based on the answers to these questions and more. For example:
Our team helps you refine the client’s definition of the “community problem” they want to solve.
We work with you and your client to identify practical ways that change could happen and how philanthropic investment can support the change.
We can connect your client with nonprofits that are working in the area of desired change, and identify meaningful and attainable milestones to measure success.
We can advise on what level of investment is appropriate and help identify other likely collaborators to make change happen.
Navigating Dynamics in Family Philanthropy
If you’re like most advisors today, you’re seeing an uptick in clients’ questions about charitable giving techniques that go beyond the nuts and bolts of tax law. Attorneys, accountants, and financial advisors hold trusted positions with philanthropic families to offer not only suggestions for tax planning in support of favorite causes, but also to be aware of perspectives that will make the charitable giving experience meaningful for all members of the family. Indeed, not all members of a single family will see philanthropy in the same way. Here are tips for working with three common points of view within a single donor family.
- Impact-focused. “Impact” is in the news more and more frequently. Family members who have a strong impact focus will be interested in learning more about how to help favorite nonprofits better communicate the outcomes of donors’ charitable investments. For example, a recent study by Oracle NetSuite, Connecting Dollars to Outcomes, uncovered that only 29 percent of nonprofits are able to effectively measure the results of dollars invested. News like this is very much on the minds of impact-focused family members.
- Legacy-focused. Most families have at least one member whose top concern relates to establishing charitable values and passing them along to the next generation. Family members like this are no doubt seeing behaviors in younger generations that are different from their own. For example, research indicates that 10 percent of Gen Z want to start their own nonprofit organization. Keeping up with trends like this will help you counsel legacy-focused members of your client families.
- Investment-focused. Family members who are interested in the dollars and cents are still going to ask about tax planning, which assets to give to charity, and how to time gifts to optimize tax benefits under the current laws. As you address these issues with investment-focused family members, it’s a good idea to also share the perspectives of legacy-focused family members and impact-focused family members. This helps the investment-focused family member see the big picture and focus on the holistic elements of the family’s entire philanthropy plan.
How We Can Help
The team at the community foundation is your partner as you work with families and the variety of personalities that come along with them. We’d love to help you navigate family philanthropy dynamics through our expertise, including researching community priorities and important social issues, helping you structure meetings to ensure that all voices are heard, and working with you and your clients to build multi-generational relationships with nonprofits in our community that are making a difference in your clients’ areas of focus.