Charitable giving is always an important strategy to discuss with your clients. Many individuals and families are philanthropic, of course, and charitable gifts reduce taxable income and avoid estate taxes. Charitable giving strategies are particularly relevant as you and your clients address the possibility of increases in income and capital gains taxes for high earners as well as increased estate taxes due to the looming exemption sunset.
So why does this matter to you? It matters because philanthropic families will rely increasingly on their attorneys, CPAs and financial advisors to help them navigate savvy tax planning strategies, including charitable giving. And many of these families are very generous, so don’t underestimate your clients’ desire to get involved in charitable giving.
You may already be working with families who use private foundations to fulfill their charitable giving goals. In many instances, these private foundations were established by previous generations before donor advised funds became widely available. In some cases, your clients may want to consider closing a private foundation and transferring the assets to a donor advised fund because of the many administrative and tax benefits, as well as the value of being able to lean on the knowledgeable team at the Community Foundation.
As donor advised funds become more popular, please reach out to the team at the Community Foundation to explore a parallel strategy where your clients can carry out their charitable intentions using both a donor-advised fund and a private foundation.
Whether your client pursues their philanthropic goals through a private foundation, donor advised fund, or a combination of both, we are here to help. Please reach out to our team to discuss the ways your clients can support causes that align with their values and passions, create a lasting legacy that extends beyond their lifetime, involve multiple generations in philanthropic efforts, and foster an overall sense of family unity and shared purpose.