Talking with Clients

How can I recommend charity without recommending a charity?

Fortunately, there’s a simple solution: your local community foundation. A community foundation is a single, trusted vehicle your clients can use to address the issues they care about most, while gaining maximum tax benefit under state and federal law. We offer a variety of giving options, including the ability to set up a charitable fund in your client’s name. It’s just one way we can help you help your clients achieve their charitable goals.

Listening for charitable opportunities and helping your clients achieve charitable goals

Philanthropy is a very personal decision. A professional advisor can help clients realize their charitable objectives by listening for charitable giving opportunities, explaining options, and suggesting solutions. Significant giving opportunities often arise when clients are making major business, personal, and financial decisions. Our staff can work with you and your client to recommend the best charitable solution.

Listening for Charitable Opportunities (PDF)
Charitable Instruments (PDF)
Donor-Advised Funds (PDF)
Private Foundation Funds (PDF)

Typical scenarios:

Year-end tax planning
Your client just earned a large bonus and wants to give a portion back to the community, but has no time to decide on the most deserving charities. Recommend establishing a Donor-Advised Fund through their community foundation for an immediate tax deduction, and the ability to stay involved in recommending uses for the gift for years to come.

Preserving an estate
Estate planning identifies significant taxes going to the IRS, but your client wants to direct dollars for local benefit. The Community Foundation can work with you and your client to reduce his/her taxable estate through a charitable bequest or other planned gift. Your client’s gift will create a legacy of caring in the community that stays true to his/her charitable intent forever.

Retiring in comfort
Your client is concerned about running out of money during his/her lifetime, but has always been charitable. Recommend establishing a life income gift (such as a charitable remainder trust) at the Community Foundation that pays income potentially for life. Upon your client’s death, the gift can be distributed by the Community Foundation in accordance with his/her charitable interests.

Establishing a private foundation
Your client is thinking about establishing a private foundation, but is looking for a simpler, more cost-efficient alternative. The Community Foundation can help you and your client analyze the pros and cons of creating a Donor-Advised Fund, a supporting organization, or a private foundation.

Closely held stock
Your client’s personal net worth is primarily tied up in a closely held company, but it’s important for him/her to give back to the community. Recommend establishing a Donor-Advised Fund or planned gift; your client is eligible for a tax deduction measured by the fair market value of appreciated stock (less any planned gift value).

Sale or disposition of highly appreciated stock
Your client has appreciated stock and wants to use a portion of the gains for charitable giving, but the identified charities are too small to accept direct stock gifts. Suggest establishing a fund at a community foundation with a gift of appreciated stock. Your client receives a tax deduction on the full market value, while avoiding the capital gains tax that would otherwise arise from sale of the stock. Your client can even be involved in recommending uses for the gift, including the organizations and programs he/she cares about most.

Sale of a business
Your client owns highly appreciated stock in a company that is about to be acquired. The Community Foundation can work with you to suggest several ways to structure a charitable gift (including the use of planned giving techniques) to help your client reduce capital gains tax and maximize impact to the community.

Strategic giving
Your client is passionate about helping to meet a specific community need and wants to make a meaningful gift. You and your client can work with our grantmaking experts to understand community needs and programs and then direct gift dollars to make the greatest impact.

Substantial IRA/401(k) assets
Your client wants to leave his/her estate to community and family, and has substantial assets in retirement accounts. The community foundation can help you and your client evaluate the most beneficial asset distribution to minimize taxes, giving more to his/her heirs and preserving charitable intent.

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