Discussing Charitable Giving

How do you invite a conversation about your clients’ philanthropic vision? What if you could help your clients set philanthropic goals while still protecting their assets?

Jennifer Walker, Attorney, Leach & WalkerCFMC staff is always accessible and helpful to my clients. They take the time to explain numerous planned giving opportunities in a way that is not intimidating and they also provide thorough background information regarding our local charitable organizations. I feel fortunate to have this resource available. – Jennifer Walker, Attorney, Leach & Walker

Charitable Giving Opportunities

When your clients meet with you, they are focused on seeking your expertise to optimize the benefits of giving. Here are some situations in which a charitable gift may be an important part of planning with your clients.

Charitable Estate Planning

You are aware of significant tax advantages your client can achieve by including a charitable provision in his or her estate plan. Your client’s bequest can create a fund that will contribute forever to causes that are important to them while generating significant estate tax savings. The CFMC can help your clients identify their charitable goals now and help you maximize the tax benefits of the bequest.

Year-end Tax Planning

Your client just had a liquidity event or earned a large bonus. He or she wants to give back to the community but doesn’t have time at year’s end to decide how to maximize their giving impact. You can recommend establishing a donor advised fund at the CFMC, which would allow your client to realize an immediate tax deduction and have the opportunity to seek advice regarding the most effective use of his charitable assets. The client can begin making grants whenever he or she is ready.

Gifts of Highly Appreciated Stock

Your client has highly appreciated stock and is willing to consider a charitable gift. He or she may realize a tax deduction for the full market value, while avoiding the capital gains tax that would otherwise arise from the sale of the stock. The Foundation also accepts gifts of closely held stock.

Life Income Gifts(CRTs and CGAs)

Your client finds he or she does not have sufficient income from the assets he or she has accumulated. The CFMC can show you how a charitable gift annuity or a charitable remainder trust can help your client achieve their charitable objectives while meeting income goals. The charitable portion of their gift can be directed to the client’s favorite charity.

Substantial IRA/401(k) assets

We can help you and your client evaluate the most beneficial asset distribution to minimize taxes, thereby giving more to his or her heirs and still achieving significant charitable objectives. For example, it is usually more tax advantageous for a donor to give retirement assets to charity and other assets to their heirs. Income tax and possibly estate taxes often diminish the value of an IRA or other retirement assets left to an heir.

Sale of a Business

Your client owns highly appreciated stock in a company that is about to be acquired. The CFMC can work with you to suggest several ways to structure a charitable gift (including the use of planned giving techniques) to help your client reduce capital gains tax and maximize the impact to his or her favorite charitable causes.

Private Foundation Alternatives

Your client either doesn’t have the substantial resources needed to start a private foundation ($10,000,000 is recommended) or lacks the time to oversee its administration and succession planning. The CFMC can help you and your client consider simpler, more cost-efficient alternatives to a private foundation. Consider our variety of fund types, such as a donor advised fund.

Tools to Help You

We offer tools to help you discuss charitable giving with your clients through our Planned Giving Center. There you’ll find information about the assets we can accept, planned giving vehicles, and calculators to help you advise your clients about the benefits of giving.

Visit Our Planned Giving Center