Valuable conversations: Talking with your clients about charitable giving

Even though 2023 is only a few weeks old, we’re hearing from many attorneys, accountants, and financial advisors that clients are already talking about their charitable giving plans for the year. 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

Research has shown that advisors who proactively inquire about and offer solutions around philanthropy inspires client loyalty, even across client generations.

When you work with your clients on their charitable giving plans, consider also including the clients’ children and grandchildren in the planning, thereby giving you the opportunity to build strong, multi-generational relationships. For example, you may help your client plan an overall charitable giving strategy that includes naming children and grandchildren as successor advisors to a donor-advised fund at NCCF. These conversations will help you get to know the family dynamics as well as build relationships with other family members.

The community foundation advantage

Advisors frequently comment that they’re surprised to discover the many ways a community foundation can help their clients, especially compared with national donor-advised fund programs affiliated with brokerage houses or financial services firms.

The team at NCCF works with North Carolina nonprofits every day and thoroughly understands how organizations are meeting community needs. 

In addition, NCCF is unparalleled in its ability to be flexible and responsive, providing outstanding, personal service designed around your clients’ needs while always respecting your role as your client’s primary advisor. 

Options for every client’s unique situation

Our team welcomes 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:

Wills and trusts

A client can establish a bequest to a fund at NCCF through a will or trust or through a beneficiary designation on a qualified retirement plan or life insurance policy. We can provide 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 the community foundation 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 us through a family donor-advised fund or other philanthropic vehicle that facilitates succession planning.

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. 

Giving with complex assets

Consider giving with more complex assets, including closely-held stock and real estate. We can help utilize these assets to facilitate your clients’ charitable giving goals and meet the clients’ financial and tax goals at the same time.