Charitable Giving Solutions

Research shows many people want their advisors to raise the issue of philanthropy; however, it can be uncomfortable knowing exactly when to bring the subject up. Here are some scenarios when it might make sense to talk about charitable giving.

  • Leaving a Legacy

    You’re aware that including a charitable provision in your client’s estate plan provides tax advantages, but it can also help establish a permanent legacy. Your client’s bequest can create a fund that will forever contribute to the causes that matter to them.

  • Year-End Tax Planning

    Your client may wish to share some good fortune with the community at year’s end, but doesn’t have the time to decide how. You could recommend a donor-advised fund at the FM Area Foundation, providing an immediate tax deduction, while buying time to later decide on the most effective use of charitable assets.

  • Highly Appreciated Stock

    A client with highly appreciated stock who’s considering a charitable gift can receive a tax deduction for full market value, while avoiding capital gains tax that would arise from a typical stock sale.

  • Retirement Preparation

    If your client isn’t receiving sufficient income from appreciated assets, a charitable remainder trust could assist them in achieving charitable objectives while preparing them well for retirement.

  • Substantial IRA/401(k) Assets

    The community foundation can help evaluate the most beneficial asset distribution to minimize taxes. It is usually more tax advantageous to donate retirement assets to charity and leave other assets to heirs. Income and real estate taxes often dilute the value of an IRA left to an heir.

  • Selling a Business

    If your client owns highly appreciated stock in a company that is about to be sold, the community foundation can suggest several ways to structure a charitable gift to help your client reduce capital gains tax and maximize the impact to a charitable cause.

  • Private Foundation Alternatives

    When a client doesn’t have the resources required to start a private foundation, or lacks the time to oversee it, we can help you and your client consider simpler, more cost-efficient alternatives, such as a donor advised fund or supporting organization.

Still not sure if you’re completely comfortable discussing this topic? Give us a call. We’d be happy to accompany you when meeting with your client.