As the year draws to a close, charitable giving is likely top of mind for many of your clients. But sometimes the joy of generosity can be overshadowed by impending tax deadlines, urgent appeals from charities, and the holiday rush. If that’s the case for your clients, a Giving Fund (donor-advised fund) can help.
How do you know if opening one before year end is right for your client? Here are five signs:
1. They wish they had more time to plan their giving
With the tax deadline of December 31 quickly approaching, your clients may feel the pressure to make significant charitable gifts before year end. With a Giving Fund, they can make a contribution to their fund now for tax purposes, and then recommend grants after they’ve had time to research charities and pray about their decisions.
2. They want to maximize their tax savings
If the total of their itemized deductions is just below the level of the standard deduction, they may be able to maximize their tax benefits by bunching two or more years of charitable contributions this year. With a Giving Fund, they can combine these gifts now and then grant over time.
3. They’re overwhelmed with charity appeals
With the year end comes a deluge of emails and appeal letters from multiple charities, and your clients may wish they weren’t on so many mailing lists. With a Giving Fund, they can recommend grants anonymously and NCF sends the checks for them.
4. Their stock portfolio is up
With the market up, your client may be facing higher capital gains taxes next year. They can offset these gains with a gift of appreciated stock before year end to a Giving Fund. NCF liquidates the stock for them and places the proceeds in their fund for recommending grants to charity.
5. They’re feeling pressure to shop
With so much emphasis on the material aspects of Christmas in our culture, your client may be looking for ways to refocus their family on giving rather than getting. A Giving Fund can help spark a conversation between spouses, with grandchildren, or others about the causes they care about. Then, they can go online together to recommend grants and start a new generous family tradition.
Ready to help your clients make a bigger impact? They can open a Giving Fund today in minutes.
