For many of us, the holidays are a time to gather with family and friends, a time to give thanks for what we have, and a time to give support to the organizations and causes we care about. This is also a time of year when many wealth advisors meet with clients to talk about their year-end planning, including how to make the most of their charitable giving.
Recent changes under the Tax Cuts and Jobs Act mean it is now more important than ever for wealth advisors to talk with their clients about charitable giving.
Changes such as the increase of the standard income tax deduction may prompt some people to consider whether they should continue itemizing or take the standard deduction this year. One strategy wealth advisors are sharing with clients who have this concern is “bunching.” Charitable individuals who wish to meet the threshold to continue itemizing their deductions can do so by “bunching” several years’ worth of charitable gifts into one year.
Establishing a Donor Advised Fund at The Minneapolis Foundation is a great way for wealth advisors and their clients to effectively manage this approach. When a charitable individual establishes a Donor Advised Fund to make multi-year contributions in the year they plan to itemize, they can control the timing of their tax filer status while maintaining a consistent level of annual charitable giving to the organizations and issues they care about.
Giving is More Than A Tax Strategy
Donors don’t make charitable gifts simply to get a break on their taxes. The 2018 U.S. Trust Study of High Net Worth Philanthropy identified the top three motivations for giving by high-net-worth individuals: They’re passionate about a cause. They have a strong desire to give back. And they want to make a positive difference in the world.
The Minneapolis Foundation partners with wealth advisors and their clients to help donors make the most of their charitable giving. We connect donors to high-performing nonprofits. We support families that want to work together across generations to make a difference in their community. We offer unique giving opportunities like impact investing. We bring people together as a giving community and help them increase their impact by working together. We help individuals, families and businesses build a legacy of generosity to do the most possible good—today, tomorrow and beyond.
Start Building Your Legacy Today
While recent changes to tax law make this an especially good time for wealth advisors to talk with their clients about charitable giving, clients feel these conversations should be ongoing.
The U.S. Trust survey found that an overwhelming majority of high-net-worth individuals—nearly 80 percent—believe their wealth advisors play an important or very important role in their charitable giving. The survey also found that than 90 percent of advisors believe it is important to talk to their clients about charitable giving. In fact, many consider these conversations an ethical and professional obligation.
The Minneapolis Foundation works with advisors and their clients to create giving strategies that will help achieve their financial and charitable goals. We even offer the opportunity for some financial advisors to continue managing the assets their clients contribute to a fund at The Minneapolis Foundation.
Now is a great time to learn more about how The Minneapolis Foundation can help you build a legacy of giving—not just for year’s end, but for the long haul.
To start the conversation, call us today.