A Single Question Makes it Easy to Help Clients with Year-end Charitable Giving

A single question makes it easy to help clients with year-end charitable giving. Some of the most productive charitable planning discussions begin with a question you’re probably already asking:

Here are just a few examples of developments that can create opportunities for charitable planning.  

Retirement

If a client is age 70½ or older, you may want to explore the benefits of Qualified Charitable Distributions (QCDs) from their IRAs. QCDs can’t go to donor advised funds, but they can support other funds to support a specific nonprofit(s) or an area of interest (i.e.  youth, the arts or the environment). 

High Income 

If a client’s income was higher this year than expected, it makes sense to ask: “Are you considering increasing your charitable giving?” If yes, you can provide more detail on year-end planning techniques or contact The Community Foundation for strategies to help your client achieve their philanthropic and financial goals. 

Stock Market Gains 

If your client has appreciated stock, you’re well aware they are typically better off from a tax perspective if they give to a charity or create a charitable fund with appreciated stock held for more than one year instead of writing a check. That’s because the client’s charitable deduction is calculated based on the stock’s fair market value, and the charity (unlike your client) can sell the stock without triggering capital gains tax. 

Expanding Community Involvement 

If a client is volunteering or has joined a nonprofit’s board of directors, you could ask: “Does this change how you think about your charitable giving plan?”  A fund at The Community Foundation can be created to support a specific nonprofit or an issue area. 

Your client may also appreciate a charitable advising “tune-up.”  Have you asked the question: “What would you like your charitable giving to accomplish?” 
The answer may lead to a tax strategy, a particular giving vehicle, a family conversation, or something else entirely

According to Cerulli Associates, $18 trillion is expected to flow to charitable causes over the next few decades of generational wealth transfer, creating opportunities for advisors to connect financial planning with clients’ values, family relationships and legacy goals. 

Our team is honored to be your first call as a charitable giving resource. We can help you explore what matters to your client and then work with you to identify charitable strategies that fit.