Tax-time to-dos: Bring charitable giving to the conversation

Among the many benefits of discussing charitable giving with your clients is that they will view you not only as a transactional advisor, but also as a trusted professional who is knowledgeable about local community needs and nonprofits. This is especially the case when you have a close working relationship with the Community Foundation. What’s more, for years, longstanding research has shown that a proactive advisor who offers options for incorporating philanthropy into financial and estate plans will inspire client loyalty, even across client generations. 

An eye-opening range of flexibility and options

Advisors frequently comment that they’re surprised to discover the many ways the Community Foundation can help their clients, especially compared with national donor-advised fund programs affiliated with brokerage houses or financial services firms. The team at the Community Foundation works with local nonprofits every single day and thoroughly understands how organizations are meeting community needs. In addition, the Community Foundation is unparalleled in its ability to be flexible and responsive, providing outstanding, personal service designed around your clients’ needs while always respecting your role as your client’s primary advisor. 

Options for every client’s unique situation 

Our team welcomes the opportunity to work with you and your clients to implement their charitable giving goals. Here are just a few of the ways we can work with you as your planning work with clients gets into full swing for 2024:

• Wills and trusts: A client can establish a bequest to a fund at the Community Foundation through a will or trust, whether a specific bequest of a certain dollar amount or a remainder bequest of what’s left in the estate. The Community Foundation is happy to provide proper bequest language.
• Retirement plan beneficiary designations: Bequests of qualified retirement plans can be extremely tax efficient. Funds flowing directly to a client’s fund at the Community Foundation from a retirement plan after the client’s death will not be subject to income tax or estate tax. By contrast, these assets are subject to both income and estate tax when they flow to a client’s children, for example, upon the client’s death.
• Family philanthropy: Consider encouraging clients to involve their children and grandchildren in philanthropy, especially when the clients are working with the Community Foundation through a family donor-advised fund or other collaborative vehicle.
• Income tax planning: Remind clients that they are eligible for an income tax deduction for lifetime charitable gifts, and the gifted assets are no longer subject to future estate taxes. 
• Complex giving: Consider more complex giving vehicles, including charitable remainder trusts, charitable gift annuities, and gifts of closely-held stock. The Community Foundation can work with you to establish these structures to help facilitate your clients’ charitable giving goals and meet the clients’ financial and tax goals at the same time. 

We look forward to working with you as 2024 planning shifts into full gear!