As always, the team at Hudson Community Foundation (HCF) tracks legislation, legal developments, trends, news, and innovative strategies for all types of charitable giving so that we can keep fund holders and their advisors up to date.
These days, we’re carefully watching the IRS’s proposed regulations related to donor-advised funds. Issued in November 2023, the proposed rules have been the subject of conversation within financial and estate planning circles, especially following the April 19, 2024, letter signed by Ways and Means members and addressed to Treasury Secretary Janet Yellen urging the Treasury to take note of the proposed regulations’ potential chilling effect on philanthropy and especially on the work of community foundations.
We’ll keep you posted on new developments related to the proposed donor-advised fund regulations. In the meantime, we’d love to share examples of when–and why – HCF should be your first call when you are presented with a client’s charitable giving question or opportunity.
Before a sale of a business:
As you work with clients who own closely held stock and who are charitably inclined, please give us a call well before the client starts down the path of an exit. A gift of closely-held stock to a private foundation creates a vastly different tax result than a gift of closely-held stock to a fund at the community foundation. The community foundation is a public charity with all the tax benefits that go along with that status, even while serving as an “umbrella” for individuals’ and families’ funds.
Planning in all seasons
A focus on tax savings is not just for tax season or year-end. Whether you are meeting with a client in winter, spring, summer, or fall, HCF can help you spot an opportunity to activate charitable giving techniques that both deliver tax benefits and achieve a client’s philanthropic goals. We’d be happy to join you in a meeting with a client to review their historical charitable gifts and dive deeper into their intentions to give during their lifetimes and even leave a legacy.
Portfolio awareness
If you are a financial advisor, you have certainly made it a practice to advise your clients about asset allocation. But when you talk with clients about short-term cash needs, do you ask about their charitable giving plans? A client who is planning to make a major gift to charity–of which you are unaware–could potentially disrupt a portfolio’s overall asset allocation. The community foundation can help you structure a client’s gift to charity so that the client does not need to prematurely divest from non-cash positions.
The bottom line, please consider Hudson Community Foundation as your “go to” resource for philanthropy. We’d love to be your first call whenever you encounter an issue that relates to charitable giving. We can help. Providing an effective and efficient solution for your client or pointing you in the right direction.
And of course, we will keep you posted about the proposed regulations!
We welcome conversations to help donors give to their favorite causes. Hudson Community Foundation enables simple, smart, and meaningful family philanthropy. Although HCF is a public charity, it does not promote one charitable cause. Rather, HCF is committed to expanding the capacity of family philanthropy – no matter where you live.
Read more about Donors Guide to Donor Advised Funds.
With a fund at Hudson Community Foundation (HCF), advisors can manage the charitable assets on their preferred platform at any amount. Assets stay under your management. You can provide your clients with the consistent investment advice they expect. We are your partner in charitable giving!
The team at HCF is a resource as you serve your philanthropic clients. We understand the charitable side and are happy to serve as a secondary source as you manage the primary relationship with your clients. This blog is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.
