Big gifts, bullish portfolios, and kids who move away

Now is a good time to talk to clients about using their gains in 2023 to support their community.

If you’re not talking about charitable giving with your high net-worth clients, 2024 is the year to start. Recent studies show that 85.1% of affluent households give to charity. Many of your clients are likely among them.??Take a few minutes this month to scan your client list for three common scenarios and related opportunities for charitable giving solutions.?

Clients who made significant charitable gifts at year-end.? You’re probably aware of at least a few clients who increased their charitable giving at the end of 2023. Perhaps you worked with a client to establish a Donor Advised Fund or other type of charitable giving fund at the Idaho Community Foundation, or maybe you helped a client structure a Qualified Charitable Distribution to a Field of Interest or Designated Fund at the community foundation.

Now that the dust has settled on year-end planning activities, go back to these clients to find out more about their overall philanthropic plans. You may discover that a client would like to work with you to update their estate plan to include a bequest to their fund at the Idaho Community Foundation, set up a charitable remainder trust with highly-appreciated stock (scroll down to our gift calculator to see how it would work), or proactively plan their charitable gifts for 2024 to get a jump on tax strategies.

Clients whose stock portfolios have rallied.2023 brought good news and record highs for the stock market. As always (and perhaps especially now), giving appreciated, publicly traded stock to charitable organizations is a highly effective tax strategy.

This is because capital gains tax is avoided when your client transfers long-term, marketable securities to a fund at the Idaho Community Foundation or other public charity.?The client is typically eligible for an income tax deduction at the fair market value of the securities, and when the charity sells the securities, the charity does not pay capital gains tax. This is a win-win for your client and the charity. Scan your client list for clients who are holding long-term stock positions that have appreciated substantially since they bought them, especially with the market’s latest rally.?

Clients whose children have moved away.?Children of affluent parents tend to move away. This means many of your clients may be seeking ways to stay in close communication with their children. Remember that while the Idaho Community Foundation can help your clients maximize the impact and tax benefits of their local giving, we also have tools for giving outside of Idaho.?For example, your clients can use their Donor Advised Fund to support 501(c)(3) organizations across the country, including in communities where their grown children are living. When you demonstrate your interest in your clients’ charitable giving priorities, you are strengthening your client relationships, and you’re also helping clients strengthen relationships with their children.??

Reach out to Kris Kamann, CAP? , Rich Ballou , Peter Faucher , or Clark Hyvonen for more information on how Idaho Foundation Community can help you reach your giving goals!

The team at the Idaho Community Foundation is a resource and sounding board as you serve your philanthropic clients. We understand the charitable side of the equation and are happy to serve as a resource as you manage the primary relationship with your clients. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.?