Three: The Client-Centered Team
Effective charitable planning requires the collaboration of a diverse set of private client advisors-from wealth managers to accountants to estate planning attorneys. A key element of the client-centered team is the philanthropic advisor-a professional with specialized knowledge of the nonprofit sector that can help colleagues to navigate the philanthropic landscape.
Four: Comparative Information on Charitable Giving Vehicles
Often, advisors fall into the pattern of recommending those giving vehicles with which they have most familiarity. Yet different types of donors are best served by different types of giving vehicles. Be sure to research the benefits and limitations of all the options so that you can discuss and ultimately recommend the vehicle most suited to your clients' needs.
Five: Leveraging Charitable Lead And Remainder Trusts
Charitable Remainder and Charitable Lead Trusts provide a means by which clients can transfer wealth in a tax efficient way to both charitable and non-charitable beneficiaries.
Six: Financial/Estate/Tax Planning Considerations For Non-Cash Asset Contributions
By donating non-cash assets such as appreciated securities, artwork or real estate, clients can support the causes they care about while preserving cash and generating income tax benefits. However, donating illiquid assets takes a bit more planning than traditional cash giving. It is therefore paramount that advisors are well versed in the benefits, limitations and processes associated with gifting these types of assets.
Seven: Engaging The Next Generation
A recent survey of multi-family offices by New Philanthropy Capital found that 85 percent of families with children either discuss or actively involve their children in philanthropy, and 60 percent of these families would find philanthropy advice useful in doing so.
Therefore, it is important for advisors to be aware of various strategies for bringing children and grandchildren into the planning process, including:
Providing opportunities for experiential learning. For example, you might encourage clients to set aside a pool of discretionary funds over which the next generation has spending authority.
Encourage grandparents to write letters describing the motivations behind their philanthropy and laying out the goals they hope to achieve with their charitable investments. Letters such as these can foster meaningful dialogue across generations and help guide the continuation of family philanthropy.