Year-End Opportunities and Potential Pitfalls Around Philanthropy

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Categories: Advisors

Search Topics: Foundation Investments Foundation Tax Strategies Strategic Planning

Making Sure Your Client’s Philanthropy Is Your Business and Remains Your Business

Charitable giving tools and techniques are not only valuable aids that allow your clients to accomplish their charitable giving goals. They are also some of the most valuable, effec­tive, and perhaps least understood wealth management and wealth transfer tools available in the planning toolkit today. Charitable remainder trusts, charitable lead trusts, private foundations, donor-advised funds, charitable gift annuities and other charitable tools can be combined with other charitable as well as with non-charitable tools to maximize the value and usefulness of all of a client’s assets, both now and in the future, to allow the client to accomplish all she wishes with her wealth.

In particular, private foundations continue to be one of the most important and desired components of the wealth strategy of high-net-worth and ultra-high-net worth individuals and families. There are over 80,000 private foundations in the U.S. today; more than 50% of them have been created in the past 15 years. Private foundations continue to be established and funded by clients year after year; and the amount of wealth being transferred to these foundations has remained at all-time highs over the past decade.

If you want to be their most trusted advisor, your client’s philanthropy, and the private foundations they create, fund and manage, must be your business. And year end is the time that clients engage philanthropy, consider and strategize about foundations, make decisions about their annual charitable giving, add assets to support their charitable goals, and need and seek advice in that process. Make sure you are able and willing to support this process and to bring strategic advice to the conversation. This will ensure that your clients meet their wealth management goals and that they continue to view you as indispensable in the long-term management of their wealth.

This whitepaper offers insight into year-end opportunities and potential pitfalls for advisors working with high-net-worth and ultra-high-net-worth individuals and families. It also offers practical advice on how to avoid these common pitfalls and broaden and deepen your client and prospect relationships at this critical time of year.

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