Should bigger gifts change the philanthropy conversation with clients?

Ranging from $175 million to a whopping $15 billion, the 10 largest gifts to charity in 2021 may have caught your clients’ attention.

Not only do philanthropic gifts seem to keep getting bigger, but the future looks bright, too, with more than $84 trillion projected to be handed down in what may be one of the largest intergenerational transfers of wealth in history.

Although most of that money will flow to heirs, projections indicate that charities could receive as much as 14 percent (9 percent in the form of bequests and the rest as lifetime gifts to charity). 

As your Baby Boomer clients plan their estates, keep that 14 percent in mind, especially as philanthropists at all levels are becoming increasingly intent on making an immediate impact on important causes instead of leaving behind perpetual philanthropic structures.

Our team partners with professional advisors to help clients “reverse engineer” philanthropic structures to maximize impact during and after their lifetimes. 

Which clients should you begin having these conversations with? We recommend keeping an eye out for clients who match these characteristics: 

• Families who have started to talk with you about multi-generational participation in philanthropy but do not yet have any formalized plans.
• Families who have publicly demonstrated a commitment to three or more charitable organizations.
• Families who own a multi-generational family business with corporate giving and enterprise legacy intertwined.
• Families in which members across multiple generations appear to be actively involved in philanthropy discussions.

If you’re interested in learning how we can help meet your clients’ financial planning and charitable giving goals, contact me at (858) 245-1508 or jrogers@sdfoundation.org.

What 2022 Tax Reform Means for Charitable Giving

Last year’s heavily-debated versions of the Build Back Better Act called for tax increases that potentially could have impacted charitable giving. But, as 2022 gets into full swing, legislation that eventually passed may bear little resemblance to early iterations.

In particular, the debate over the cap on the deductibility of state and local taxes (“SALT”) has illuminated a parallel debate over whether the changes to the cap would impact charitable giving.

At the moment, though, tax increases to support President Biden’s legislative agenda are still very much up in the air. 

In other tax news, advocates for charitable organizations are lobbying lawmakers to bring back COVID-19-related tax incentives, including the $300 ($600 for joint filers) “universal” charitable deduction.

Meanwhile, taxpayers may find themselves in limbo over timing decisions for their gifts to charity, as well as other tax-sensitive transactions, creating ongoing discussions with advisors about whether to pursue “bunching” strategies or instead to wait for more clarity on the legislative situation.

Learn More

For more than 45 years, we have partnered with a large network of wealth advisors, estate planning attorneys, tax planners and other advisors to help high-net-worth clients and families achieve financial planning objectives and charitable giving goals, while maximizing tax deductions.

From establishing donor-advised funds to building your clients’ legacies and providing them with grantmaking guidance on community needs, we act as your team’s charitable partner, supporting your clients through the giving process as you retain complete control of your relationships.

Partner With Us Today