August is National Make-A-Will Month, which means it’s the perfect time to review estate plans with your clients. As you meet with your clients to update wills, trusts, and beneficiary designations, remember that the team at the Community Foundation is here to help ensure that your client’s philanthropic intentions are well-documented and structured in the most effective ways, both from a tax perspective and through the lens of community impact.
We know that you and other financial advisors, attorneys, and CPAs are always on the lookout for practical tools to help clients identify the most effective charitable giving vehicles for their unique situations. The Community Foundation has a wide range of fund options, and we are here to help you and your clients find the best fit. We highly recommend you gain a general understanding of the choices available to help clients optimize tax planning while achieving philanthropic goals. That’s why we’re sharing a simple decision tree to lay the groundwork for your client conversations.
Does your client want to address Northern Virginia's greatest needs, but prefers to rely on professional expertise?
If so, your client should consider making a gift to the Permanent Fund at the Community Foundation.
Advantages include:
- Enables the Community Foundation to direct resources toward the most urgent and evolving community challenges.
- Provides the highest flexibility for maximum impact as needs shift over time.
- Establishes a legacy of giving that adapts to future circumstances and priorities.
- Serves as a vital source of funds for our region’s ability to respond to crises or emerging opportunities, allowing the Community Foundation to act swiftly where resources are most needed.
Does your client want to make a long-term, meaningful impact on a single nonprofit?
If so, your client should consider setting up a designated fund at the Community Foundation.
Advantages include:
- Focused, predictable support for a chosen organization, either as recurring grants or support on an as-needed basis.
- Particularly beneficial for clients wishing to “bunch” charitable gifts to a particular organization (i.e., group multiple years of gifts into a single year for tax efficiency).
- Can provide a degree of protection from financial instability at the recipient charity because the Community Foundation retains stewardship of the assets while they are held in the fund.
Does your client want flexibility while also staying actively involved in supporting multiple causes?
If so, your client should consider establishing an endowed donor-advised fund at the Community Foundation. Indeed, donor-advised funds are the fastest-growing charitable vehicle in the U.S. because they make charitable giving easy and effective for so many people who want to support a wide variety of favorite charities. Creating an endowed donor-advised fund through the Community Foundation ensures the donor’s charitable legacy and provides funding in perpetuity for the causes they care most deeply about.
Advantages include:
- Immediate tax deduction for initial and subsequent contributions.
- Flexibility to recommend grants to IRS-qualified 501(c)(3) charities over time.
- Ability to name the fund and limit the sharing of donor information with recipient charities.
- Simplifies record-keeping and streamlines the process for annual giving
We look forward to working with you to support your clients’ philanthropic needs. This email address is being protected from spambots. You need JavaScript enabled to view it. to learn how we support our professional advisor partners.
The Community Foundation team is happy to help you structure charitable giving tools and plans to achieve your clients’ philanthropic goals—whether through beneficiary designations or any other type of charitable giving vehicle. This email address is being protected from spambots. You need JavaScript enabled to view it.!
The information contained in this video is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.
Questions?
Questions?
