The 2017 Tax Cuts and Jobs Act that overhauled the American tax code has changed how advisers are promoting charitable strategies to clients, a study by Fidelity Charitable has found.
"Advisers seem to have recognized that charitable giving has become a more prominent part of providing holistic financial and wealth management services and are having more philanthropic conversations with their clients," Fidelity said in a release.
Since 2015, the number of clients with whom advisers discuss giving has risen to 58% from 46%, the company said.
In addition, nearly half of advisers report that many or most of their clients adjusted their charitable giving strategy in response to tax reform.
Specifically, 47% of advisers said that many or most clients increased giving overall due to the loss of other deductions.
In addition, 46% of advisers said their clients established a donor-advised fund, and 46% said appreciated securities were donated to maximize deductions.
Fidelity Charitable is an independent public charity and one of the nation's largest grantmakers.