Charitable giving, in the context of financial advisors is a wealth management strategy that allows investors to donate assets—including appreciated securities, real estate, and other holdings—to qualified charitable organizations while optimizing their investment portfolio and tax efficiency.
Investors can donate appreciated securities directly from their portfolios to avoid capital gains taxes that would otherwise be triggered by selling. This approach allows donors to contribute at full market value while eliminating embedded gains—a particularly valuable strategy for long-held positions or highly appreciated stocks.
A popular vehicle for portfolio-focused donors, DAFs allow investors to contribute appreciated assets, receive an immediate tax deduction, and distribute to charities over time. The funds are invested and can grow tax-free, providing a way to build charitable capital while maintaining investment flexibility.
These vehicles enable investors to transfer appreciated securities into a trust, receive income distributions during their lifetime, and have remaining assets go to charity. This strategy creates liquidity for concentrated stock positions while generating ongoing income and tax benefits.
Charitable giving can serve as a portfolio management tool, allowing investors to donate underperforming or unwanted holdings while maintaining their target asset allocation—without incurring capital gains on the disposition.
For investors managing significant portfolios, charitable giving strategies integrate with broader estate planning, allowing them to reduce taxable estates while supporting causes aligned with their values.
Concern about 'Rothification' as part of larger tax reform spurs lobbying.
House Speaker aims to ease doubts about likelihood of major tax overhaul.
Trump's proposal doesn't touch such deferrals, but stakeholders fear Congress will attempt to use 401(k) plans to offset tax cuts.
The new president wants to get rid of the tax, but details are sketchy, leaving estate-tax planning in limbo. <b><i>(More: <a href="http://www.investmentnews.com/article/20170205/FREE/170209957" target="_blank">Estate-tax flux could boost grantor trusts</a>)</b></i>
Adviser's approach can overcome client worries, such as that children won't have an incentive to work if they know how much they will inherit.
Fifty-seven percent of philanthropists surveyed said advisers are necessary collaborators to achieve sustainable results.
There is still time for investors to help fulfill their philanthropic passions and also reduce their tax bills.
Philanthropy has its advantages.
A charitable giving plan is a great tool to help high-net-worth clients achieve their philanthropic goals while also solving some of their tax issues.
News that donations attached to the icy deluges helped in discovering a gene linked to ALS exemplifies the importance of progress reports for philanthropic clients.
Not all charities are created equal, and advisers shouldn't relinquish their role as stewards of their clients' wealth by avoiding philanthropy discussions
Advisers find best referral sources have time and large networks.
Mass consumer confusion regarding health care expenses in retirement makes it even more imperative for advisers to discuss the topic with clients.
In his new role, Mr. Robbins will be working with his long-time financial adviser Ajay Gupta.
Start with investments, but don't forget the overall impact on portfolios and financial plans. </br><b><i>(Plus: <a href="http://www.investmentnews.com/section/specialreport/20151129/TAXESTATE2015" target="_blank">The Spotlight on Tax and Estate Planning special report</a>)</b></i>
