We will also look into the future and ask practitioners what trends they are seeing and what skill sets are needed for the next three to five years. Findings will help organizations better prepare advisors for success and provide much needed data on our changing profession.

Read the full report here.

While philanthropy appears to be simple — you identify the organizations and causes you want to support, determine what you can afford to give, and donate — professionals who specialize in the field can take your giving to the next level. 

Here are five ways that financial advisors and professionals with philanthropic expertise add value. 

1. They can maximize your philanthropy. 

The rules, regulations, and tax codes related to charitable giving are anything but simple. And, because these can vary at the state level, advisors who understand the ins and outs of your particular situation can help you maximize your philanthropy. 

For example, the Tax Cuts and Jobs Act of 2018 changed the allowable standard deduction and charitable giving deductions. Because the bill represented a significant overhaul of the 1986 tax code, it’s not surprising that many of its features were oversimplified in reports, with some observers suggesting that charitable donations were no longer tax deductible. In reality, the bill increased allowable deductions at certain levels. 

There are also strategies such as “bunching” that an informed advisor can help you understand and utilize, if appropriate — all of which can help you increase the impact of your giving. 

2. They can help you define your goals. 

Advisors who counsel clients on philanthropy follow the same process as any financial advisor. 

They begin by gaining an understanding of your overall goals and objectives. 

• What are your priorities in giving? 
• How do you want your giving to change over time? 
• What do you want your philanthropic legacy to be? 

Thinking of charitable giving strategically and in the long-term helps you define your goals in a way that annual giving does not. Equally important, your advisor works with you to develop and implement a giving plan to realize those goals. 

3. They are connected to the charitable community. 

Advisors who specialize in giving are connected to the charitable community. Many advise nonprofit organizations on financial matters, so they can be valuable resources in directing you to effective organizations that align with your interests. 

They will also be familiar with like-minded donors who can broaden your community network. 

4. They can incorporate giving into your larger financial planning. 

Advisors with expertise in philanthropy can help you incorporate giving into your overall financial planning. 

Do you want to keep giving during your retirement? Do you want to include philanthropy in your business exit planning, estate planning, or legacy planning? 

For help with these and other questions, you’ll want to work with an advisor who understands how to translate your goals into realities. 

5. They can support your big ideas. 

If you’re in the fortunate position to set up a family foundation, you will definitely need the skills of an advisor with experience in long-term charitable planning. 

Family foundations not only leave a personal and family legacy — often in perpetuity — but also bring your family together during the planning and implementation phases. This creates a life-long-and-beyond connection that spans current and future generations. 

Whatever your philanthropic vision, a financial advisor or professional with specialized education and experience can make a difference in how you make a difference. 

This content and information was created by a third party and not The College. The College assumes no legal liability for the accuracy, completeness, or usefulness of any such content and information and the views expressed therein do not necessarily represent the views of The College.

While few of us are in that position, there’s no reason to exclude charitable giving from our estate planning. And yet, many of us are doing just that. Although 60% of U.S. households donate to charity every year, 86% of charitable donations made at death come from the wealthiest 1.4%. Put another way: we give during our lifetime, but we don’t think to give as part of our legacy. 

There are reasons for this disconnect. To begin with, we don’t like to think about death, so a surprising number of us avoid estate planning completely. Caring.com’s 2020 Estate Planning and Wills Study found that the number of adult Americans who have a will or estate plan has dropped 25% since 2017, and procrastination and avoidance are likely contributors to that trend. 

Here are some insights on how to make sure you include your philanthropic inclinations in your estate planning. 

1. You are passing on your values, not just your money 

Consider this definition of legacy: “something that someone has achieved that continues to exist after they stop working or die.” 

That perspective changes the entire conversation around legacy giving. It shifts estate planning from a somber realization of the end of life to a positive way to leave lasting memories behind. 

What charities do you support now? What organizations and causes do you think will be most important and impactful for the people you care about — your children, their children, your loved ones? 

Asking and answering those questions can give you real insight into who you are and what you value, regardless of how much money you have. 

2. Your support will encourage others to give 

Charitable legacy planning can provide the organizations you care about with additional support, similar to challenge grants during fundraising drives. Nonprofits have created legacy societies to recognize, celebrate, and publicize the names of individuals who included their organizations in their estate planning. Your support becomes a public declaration of your belief in an organization’s mission and vision, and can inspire others to take action. 

Legacy societies also connect you to like-minded people and allow you to appreciate the impact of your philanthropy. For example, the Kennedy Center Legacy Society, whose mission is “to promote dignity, empowerment, and opportunity for all individuals with disabilities and special needs,” lists its members on its website and publications and invites supporters to an annual endowment event. Legacy planning can enrich your life now. 

Studies also show that people who are intentional about charitable legacy planning give, on average, three times the amount they’ve contributed throughout their lifetime, making it one of the most impactful decisions you can make. 

3. Charitable legacy planning brings families together 

Include your family early on in your charitable legacy planning discussions. That will avoid any future surprises and, more importantly, reinforce your belief in the importance of private giving. 

These discussions can also bring us closer together. As family units become increasingly diverse and nontraditional, we can't assume that our current priorities and future intentions are understood by all. 

Sharing your thoughts and motivations about your legacy plans can open rich avenues of dialogue. Use sources like Charity Navigator to ensure that the organizations you are considering have a track record of maximizing gifts. 

4. Legacy planning can be simple 

You don’t need fancy legal or financial instruments to include charitable giving in your estate planning. Unless you have complicated and extended assets, your contribution can be made through traditional means, including: 

• Wills 
• Trusts 
• Retirement funds 
• Life insurance policies 
• Physical assets 

There are tax implications that can maximize the gifts you leave for all of your beneficiaries. For example, assets from an IRA or 401(k) plan are subject to income tax when bequeathed to an individual, but are tax-exempt when left to a 501(c)(3) charity. Engaging legal and financial professionals who have the credentials and experience in estate planning is often the best way to understand which options are best for you, your family, and the causes you care about. 

Why not maximize the impact you can have, now and in the future? 

This content and information was created by a third party and not The College. The College assumes no legal liability for the accuracy, completeness, or usefulness of any such content and information and the views expressed therein do not necessarily represent the views of The College.

When you contribute cash, securities, or other assets to a donor-advised fund at a public charity, like NCF, Waterstone, or others, you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth and you can recommend grants to virtually any IRS-qualified public charity. 

When you give, you want your charitable donations to be as effective as possible. Donor-advised funds are the fastest-growing charitable giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give to charity. By the way, you can give anonymously as well if you want. 

See this Scott Thomas video on "What is Donor Advised Fund?" 

Not all donor advised funds are the same. Administration costs vary, and investment options, support, and service varies a lot as well. 

For example: what if you wanted to gift real estate or business interest? Most DAFs would not offer help, but rather refer you to get an attorney and team of advisors. 

Would you like to engage an experienced chartered advisor in philanthropy and giving strategies across large spectrum of giving be helpful? Or do you know exactly what you want to do and how, and simply want an efficient portal and an 800 number to get on your way? 

Check out my other videos and subscribe to Stewardship Matters on YouTube. Or reach out to me scott@stewardshipmatters.net.

This content and information was created by a third party and not The College. The College assumes no legal liability for the accuracy, completeness, or usefulness of any such content and information and the views expressed therein do not necessarily represent the views of The College.