Since so many want their accounts to continue, those who have created the DAF should discuss the account with the successor advisors in order to prepare them and allow for a positive experience later. Some of the many benefits to clients and advisors include:
1. Many families have been well-served by their advisors, and hope that their children will continue to work with them so these charitable assets can continue to grow and support the philanthropic efforts of the family. Including the advisors in these conversations can help increase the likelihood of this happening.
2. Successor advisors are more likely to continue to support some or all of the charities the DAF creators have funded.
3. It is an opportunity for clients to discuss with their children why charitable giving is important to them and why they support specific causes and charities.
4. This discussion can enable clients to pass down charitable values to their children and grandchildren, and if desired, they can even include them in giving decisions now so they can be prepared to continue to give later.
5. It can become a way for families to remain united after the deaths of their parents, as the children can continue to donate together to honor the memories of their parents.
6. Some families may continue to make some grants together after their parents’ deaths, but because children may live in different areas or have different beliefs, they respectfully may make separate grants or create separate DAF accounts from which they can each give. Planning ahead to discuss various options is helpful and can help minimize potential stress and unease.
7. When told in advance that a certain amount has been set aside for charitable giving instead of for taxes or as part of an inheritance, heirs are much more understanding. This is especially true when assets from IRAs are donated to DAF accounts at death, thereby eliminating significant taxes had these retirement assets been passed down to heirs.
Since the contact information for their successor advisors may change over time, donors should provide updates to their DAF sponsor whenever there is a change.
At a recent roundtable featuring advisors from leading firms and non-profit organizations, there was a consensus that firms should not stop once a charitable vehicle has been established, as many clients need help getting started with their charitable planning but sometimes do not know where to turn for guidance.
For donors who are looking for help to develop a charitable mission or plan, engage their family, understand how to evaluate charities or how to give with impact, helpful content is offered by some DAF sponsors such as in AEF’s Library for Donors on its website. Should this content or conversations with their advisors prove to be insufficient, advisors may want to bring in philanthropic advisory firms to help their clients begin to achieve their philanthropic goals.