Include Charitable Giving in your 2023 Agenda

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Charitable giving has always been an important subject of client discussions for attorneys, accountants, and financial advisors. What’s changing now and why are clients suddenly paying more attention to philanthropy? 

What’s changed is that widespread coverage of both major charitable gifts and the ease of making online donations has prompted more of your clients to pay attention to philanthropy. We saw this first-hand on Colorado Gives Day 2022 when a record-breaking 100,000 donors donated online to the causes they care most about. New donors on Colorado Gives Day were up 37%. Here are three reasons to talk with your clients about their charitable giving plans:  

1. Tax Strategies 

Don’t assume tax strategies are the driving force for every client. Happily, most Americans are charitable with at least 50% reporting they give to one or more charitable organizations each year. That means at least half of your clients walking are giving to charity so you need to be able to address the tax aspects of charitable planning. Stay current on the basics of tax deductibility, including AGI limitations, understanding the differences between public charities such as a donor-advised fund at Colorado Gives Foundation versus a private foundation, and the benefits of donating highly-appreciated assets to charity. We are your go-to resource for complex giving, such as bequests, Qualified Charitable Distributions where retirement-age clients can give money from their IRAs to charity, and even gifts of real estate or closely-held assets. 

2. Serving Clients Across Generations 

Surveys indicate that the majority of children inheriting their parents’ estates will fire their parents’ financial advisor. An aging client base can be extremely dangerous to an advisor’s business. Whether you’re an attorney, accountant, or financial advisor, you’re certainly aware that you need to build relationships with the next generation to stand a chance of retaining the business long-term. That’s easier said than done, though, with client confidentiality rules and even just plain old awkwardness frequently standing in the way. 

Enter philanthropy. When you work with your clients on their charitable giving plans, there are several ways to include the clients’ children and grandchildren in the planning, thereby giving you the opportunity to build strong, multi-generational relationships. By helping your client plan an overall charitable giving strategy, including, for example, naming children and grandchildren as successor advisors to a donor-advised fund at Colorado Gives Foundation, you’ll get to know the family dynamics and build relationships with other family members. 

3. Responsibility to Assist Clients with their Charitable Goals 

As an advisor, we know you take philanthropy seriously and believe it’s your responsibility to understand your clients’ charitable goals, helping them reach those goals using the best tools in the market. We can help you serve your charitable clients, whether it’s behind-the-scenes or working together with you and your client. 

Our Foundation’s purpose is to serve philanthropic individuals and families and the organizations they support, maximizing positive impact on the community’s quality of life. The team at Colorado Gives Foundation is well-versed in the tax rules governing charitable giving and we know Colorado. Let us help your clients turn their gifts into meaningful impact on the quality of life for Coloradans. Our expertise and due diligence offer peace of mind that client’s favorite nonprofits have been well-vetted and are in good standing, and that their programs are legitimately serving a community need. 

By keeping these three reasons in mind, you’ll be better prepared to proactively raise the subject of charitable giving in your upcoming client meetings.  

Questions? Get in touch with our team!