Valuable Conversations: Why it's smart to talk with your clients about charitable giving
The new year is a good time to start helping your clients plan for their annual giving. With the year-end flurry of donations still fresh in many clients' minds, you may discover that clients will welcome your suggestion to make 2023 the year to get organized early, particularly as economic headwinds make planning especially important.
A conversation that benefits everyone
Among the many benefits of discussing charitable giving with your clients is that your clients will see you as an expert about local community needs and nonprofits. Your philanthropic clients want to learn how they can make a difference through their charitable activities, and they are expecting their advisors to be ready to help them structure and plan their giving. Indeed, for years, research has shown that a proactive advisor who offers options for incorporating philanthropy into financial and estate plans inspires client loyalty, even across client generations.
The community foundation advantage
Sometimes the greatest needs are right here at home and working with HCF ensures that your clients are informed and impactful philanthropists. Our team works with local nonprofits every single day and thoroughly understands how these organizations are meeting the needs of our island communities.
Options for every client's unique situation
We welcome 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 you plan for 2023:
- Wills and trusts
A client can establish a bequest to a fund at HCF through a will or trust or through a beneficiary designation on a qualified retirement plan or life insurance policy. We support you by providing 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 HCF from a retirement plan after the client’s death will not be subject to income tax or estate tax.
- Family philanthropy
Consider encouraging clients to involve their children and grandchildren in philanthropy, especially when the clients are working with HCF 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. HCF 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 in 2023!
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