Do your clients serve on boards, or have they expressed interest in charitable giving? There are several ways that you can open the conversation to learn more about your clients’ philanthropy and the impact that they want to make on the world, and Q4 is an excellent time to do so.
Do your clients typically make gifts to several charities through donations of stock? If so, a donor-advised fund may make sense to organize their giving.
Do your clients have highly-appreciated securities in a non-retirement account? These are often ideal assets to gift, since your clients both avoid capital gains tax on the sale of these securities and receive a charitable income tax deduction based on the FMV of the securities donated.
Do your clients have unique income tax considerations this year? Have they sold a business, inherited assets, or otherwise incurred a unique tax liability in 2021? If so, then “bunching” charitable donations into a donor-advised fund to obtain the maximum deductibility, and then granting over several years, may be an effective strategy.
Have your clients shared questions about the ways to engage their children in their wealth, or unease about preparing their heirs? Philanthropy can be a great way to prompt a conversation between generations about the story behind, the meaning of, and the purpose for the wealth a family has built.
There are many proposed policy changes that could impact the landscape of philanthropy. Many of these pending changes will make philanthropy more advantageous, especially proposed increases to the capital gains tax rate, and potentially rollbacks of the exclusion amount.
Getting started in philanthropy now, during 4Q 2021, won’t preclude making additional gifts or changes in the future. Don’t wait!
The Denver Foundation Can Help Clients Give in Many Ways
- Donor-Advised Funds
- Cash Wire Transfer or Publicly Traded Securities
- Mutual Funds
- Real Estate, Personal Property, and other Complex Assets
- The Denver Foundation specializes in donations of complex assets, including real and personal property, vehicles, privately held securities and business interests, cryptocurrency, and others. Please call 303.300.1790 and ask to speak to a member of the Engaged Philanthropy Team for information about donating other assets.
Important Dates
December 21: Deadline for checkbook IRA contributions
December 24: Recommended deadline to initiate electronic stock transfers
December 31: Deadline for IRA rollover contributions to leave the custodial account