Help your clients plan for 2022 charitable giving

As your clients gear up for another year of giving, how can you help them make the most of their good intentions? Consider helping clients plan their charitable giving budgets around three points: amount, timing and category.

How much? 

That’s the $64 question (and likely more, depending on the client’s budget!). When setting a budget for supporting favorite causes, clients must keep in mind that giving money isn’t the only way to do good. Clients should also celebrate other social impact activities such as volunteering, serving on a board, donating gently-used clothing, purchasing products that support a cause or marketing favorite charities through social media. It all helps. 

Clients can set annual charitable giving budgets based on what makes sense for their families. Remember, a donor-advised fund at the Community Foundation is a great way to organize financial contributions to favorite charities.

As you counsel your clients about their 2022 giving plans, keep in mind that tax reform legislation is still in flux, notably:

–Last year, the Build Back Better Act called for tax increases that could potentially have impacted charitable giving. That said, 2022 legislation may bear little resemblance to early iterations of the Act. 

–Keep an eye on discussions concerning the deductibility of state and local taxes (“SALT”) and whether those changes could affect charitable giving. 

–Charitable organizations continue to lobby lawmakers to bring back the Covid-19-related tax incentives, including the $300 ($600 for joint filers) so-called “universal” charitable deduction.

–You may want to keep “bunching” strategies in the back of your mind as you await more clarity on the legislative situation.

How often? 

Charities are looking for support throughout the year. A significant portion of all charitable contributions are made during the holiday season, but it doesn’t have to be that way. Consider suggesting that clients spread giving throughout the year. Their tax deductions are unaffected, and they’ll be giving the organizations they support a much-appreciated boost to cash flow.

Who gets it? 

Most people support a wide variety of charities. To help your clients see where their dollars are going, suggest that they sort the recipient organizations into major categories of social impact. For example, arts and culture, children and families, community development, education, and health and life science. Keep in mind that religious giving frequently falls into one of these five categories, depending on the gift’s purpose. 

As always, the Community Foundation is here to help you serve your clients by setting up a donor-advised fund, providing guidance regarding their charitable giving plan, discussing strategies to maximize their charitable impact, involving multiple generations in their philanthropy and much, much more. For more information, please contact Alison O’Carroll, director and philanthropic counsel, at 404.333.0421 or aocarroll@cfgreateratlanta.org.