As the holidays approach, charitable giving and, by extension, donor-advised funds are top of mind. Whipsawing markets had an impact in 2022, with total giving down 3.4%, although as markets came back to life in 2023, Schwab Charitable reported a significant uptick in donations over the first six months of the year. Take that, Scrooges.
As Gregg Greenberg explores in his news analysis, advisors can provide a crucial value-add in explaining the benefits of using donor-advised funds from the standpoint of tax efficiency and impact. A client should want to give to a cause for its own sake, regardless of planning benefits, but let’s be frank here — an advisor doesn’t have to be so altruistic.
Aside from the primary goal of helping worthy causes get much-needed cash, advisors can use DAFs to strengthen their own businesses in several ways. Philanthropic discussions with clients over issues close to their hearts can only deepen the advisor-client relationship. Getting to know more about them may also open doors to related communities and future referrals.
DAFs, in particular, are also a way to safeguard your balance sheet. Helping a client support a cause not only builds the connection but also keeps the assets – and related fees – with you rather than involving a third party.
While the biggest impact should, of course, be felt by the beneficiary of the donation, there are clear advantages to making charitable giving a pillar of your advisory experience.
The media is prone to anointing superstars prematurely, so it’s only right that when a genuine legend in our industry passes, we pay our respects. Despite the giant shadow of Warren Buffett, whom he helped build Berkshire Hathaway, it says it all that Charlie Munger was successful and revered in his own right.
Much of that was his investing acumen, but his cult following was undoubtedly burnished by his influence on Buffett and his quotable plain talking. Buffett called him the “abominable no-man” because he was so adept at keeping his friend’s enthusiasm in check, but Munger is also credited with broadening Buffett’s philosophy beyond mentor Benjamin Graham’s value principles to include excellent businesses with strong brands and pricing power.
Munger’s wit and incisive views were a large reason why Berkshire’s annual meeting became such a hot ticket. I’ll leave you with a favorite Munger quote: “I think life is a whole series of opportunity costs. You know, you got to marry the best person who is convenient to find who will have you. Investment is much the same sort of a process.”
Wells Fargo affiliate and women-focused wealth firm both promote leadership as they scale advisor support.
Todd Bryant of Signature Wealth Partners on vanishing pensions, SECURE Act 2.0, and what clients really want to know.
Merrill's latest hires span Colorado to Louisiana, even as industry-wide recruiting data suggests the firm is losing almost as many advisors as it gains.
The $36 million buy allegedly hid inflated books and a $50 million diversion.
“An award citing emotional distress is very unusual,” an industry executive said.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
