Generational Shifts: Fulfilling Clients’ Charitable Wishes

Chances are, you’ve already begun to notice that a major transfer of wealth is happening as your Boomer clients establish financial and estate plans to pass their wealth to their Gen X, Z,  and Millennial children.

You may have seen the Cerulli study’s estimate that $124 trillion in wealth in the U.S. will transfer through 2048. As the transfer of wealth gains momentum, advisors have a major opportunity to position themselves as trusted experts who can help clients not only structure efficient lifetime and estate gifts to heirs but also help ensure that clients’ charitable wishes are achieved.  The Community Foundation is here to help you incorporate philanthropy into your clients’ financial and estate plans.  

Here’s why this is so important:

• There’s a knowledge gap. Clients may not be aware of the options and benefits of charitable planning. Even your affluent clients may still be writing checks to their favorite charities, not realizing that gifts of appreciated stock, for example, can be more tax-efficient, and that tools at The Community Foundation, such as donor-advised funds, can be a way to support multiple organizations without the need to collect multiple receipts.
• Next-level strategies are key. Your wealthy clients will likely need to implement sophisticated strategies for transferring assets smoothly and tax-efficiently. Clients want to maximize the results of their charitable gifts while also protecting their families' interests. Leaning on The Community Foundation to help structure gifts of complex assets, such as closely-held business interests, can make a huge difference in reducing a client’s tax bill and achieving meaningful community impact.
• Legacy planning starts now.  Addressing a client’s wishes to support favorite charities can be part of a comprehensive estate and financial plan. Naming a fund at The Community Foundation as the beneficiary of a client’s IRA, for example, is a tax-efficient way to ensure lasting impact.  Or consider establishing a Charitable Gift Annuity for your client in which they or their beneficiary receive an income stream for life while receiving a tax deduction the year the annuity is created.

Our team is here to augment your expertise in charitable giving strategies. Not only will you be better able to meet clients’ needs, but you’ll also strengthen relationships and improve client retention. Please reach out to learn more about how The Community Foundation can help your clients make a lasting impact with their wealth while achieving their financial goals.