How Do You Integrate Philanthropic Goals into Wealth Management Plans?

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    Advisor Brief

    How Do You Integrate Philanthropic Goals into Wealth Management Plans?

    In the realm of wealth management, blending philanthropic aspirations with financial strategy is an art. We've gathered insights from top financial advisors and planners, detailing how they've successfully integrated charitable giving into their clients' portfolios. From strategizing tax-efficient philanthropy to aligning philanthropic efforts with values and tax planning, explore the four key methods our experts employ.

    • Strategize Tax-Efficient Philanthropy
    • Define Charitable Objectives and Strategies
    • Utilize Donor-Advised Funds and Bunch Giving
    • Align Philanthropy with Values and Tax Planning

    Strategize Tax-Efficient Philanthropy

    With the higher standard deduction now, it is more important than ever to have careful tax planning around your philanthropic goals. One should be careful to take advantage of Donor-Advised Funds, qualified charitable distributions, and the lumping of charitable gifts. More importantly, the world needs our help, and we should all do what we can!

    Bjorn AmundsonPartner, financial advisor, Quarry Hill Advisors

    Define Charitable Objectives and Strategies

    It is essential to begin by clearly defining the investor's charitable objectives. This involves identifying specific causes, organizations, or initiatives that align with the investor's values and interests. Once the philanthropic goals are established, integrating charitable giving into the overall financial strategy is crucial.

    This may involve creating a dedicated charitable foundation, a donor-advised fund, setting aside a portion of the portfolio for impact investments, or strategically planning donations to maximize tax benefits. The contribution options can be non-cash assets, stocks, real estate, cryptocurrency, or fine art and collectibles.

    Regularly reviewing and adjusting the philanthropic component of the wealth management plan ensures that it aligns with the investor's evolving priorities and continues to make a positive impact.

    Scott KraseWealth Manager, Connor & Gallagher OneSource

    Utilize Donor-Advised Funds and Bunch Giving

    A Donor-Advised Fund is a great way to help clients give intentionally. When you pair this with a 'bunch giving' strategy, it can help even more from a tax-efficiency perspective. Everyone's situation is different, and charitable inclination is very personal. This is why it would be important to consult both a financial planner and a CPA to make sure it makes sense.

    Zach LaBroadFinancial Planner, SageSpring Wealth Partners

    Align Philanthropy with Values and Tax Planning

    Incorporating philanthropic goals into a client's wealth management plan begins with a deep dive into their personal values and the causes they wish to support. We craft a strategy that marries charitable giving with astute tax planning to enhance tax efficiencies. For clients, especially professional athletes aiming for a lasting impact, we often suggest setting up a charitable trust or foundation, which can also provide positive networking opportunities and bolster their public persona.

    These philanthropic efforts are seamlessly integrated with their estate planning and continuously refined to keep pace with evolving tax laws and financial conditions, ensuring their generosity remains both beneficial and meaningful.

    Delante GreerFinancial Planner, Opulentia LLC