Identifying Charitable Opportunities for Your Clients
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You can help your clients realize their charitable objectives by listening for charitable giving opportunities, explaining options and suggesting solutions.
Significant giving opportunities often arise when your clients are making major business, personal, and financial decisions. Advisors who can comfortably discuss charitable giving benefit their clients and our community, and strengthen their client relationships.
Retiring in comfort
Your client is concerned about running out of money during his or her lifetime, but has always been charitable. Recommend establishing a life income gift (such as a charitable remainder trust) with a highly appreciated asset; your client continues to receive income for life. Upon your client’s death, the proceeds can be distributed to the Foundation to establish a fund in accordance with your client’s charitable interests.
Alternatives to establishing a private foundation
Your client is thinking about establishing a private foundation, but is looking for a simpler, more cost-efficient alternative. We can help you and your client analyze the pros and cons of creating a donor advised fund, a supporting organization or a private foundation.
Closely held stock
Your client’s personal wealth is primarily tied up in a closely held company, but it’s important for your client to give back to the community. Suggest contributing a portion of the company stock to the Foundation; your client is eligible for a tax deduction measured by the fair market value of appreciated stock.
Your client is tired of managing rental property, but needs the income and is concerned about capital gains tax. With a charitable remainder trust your client can avoid capital gains tax, secure lifetime income (maybe more than the rental), claim a sizeable tax deduction and support his or her favorite charitable causes.
Sale or disposition of highly appreciated stock
Your client has appreciated stock and wants to use a portion of the gains for charitable giving, but the identified charities are too small to accept direct stock gifts. We suggest establishing a fund at the Foundation with the gift of appreciated stock. Your client receives a tax deduction on the full market value, and can recommend grants from the fund to the organizations they care about most.
Sale of a business
Your client owns highly appreciated stock in a company that is about to be acquired. We can partner with you to suggest 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 the community.
Your client is passionate about helping meet a specific community need and wants to make a meaningful gift. You and your client can partner with our staff to better understand community needs and programs, and learn how to make the greatest impact.
Substantial IRA/401(k) assets
Your client wants to leave his or her estate to family and the community, and has substantial assets in retirement accounts. We can help you and your client evaluate planning options that can accomplish his or her goals while minimizing taxes.