Talk with Your Clients about Donor-Advised Funds 

Talk with Your Clients about Donor-Advised Funds 

You may understand the reasons you should talk with clients about donor-advised funds, but you may be postponing doing so. 

Some advisors find starting the conversation around charitable giving a bit awkward but delaying the topic could be a mistake. Almost a third of clients expect you to talk about charitable giving in their very first meeting, according to a study by U.S. Trust—and the majority agree that it should come up in the first few meetings.

For advisors we work with and who know how to introduce the topic, conversations about philanthropy can lead to better client relationships and possibly more referrals, as well as a relationship with the donor’s heirs, and their successor advisors.

With Hudson Community Foundation (HCF), these charitable funds can be opened on your preferred platform, and you manage the charitable assets starting at $5,000.  This is a way to grow assets under management.  Another benefit of opening a Donor Advised Fund (DAF) with HCF is this can be a method to reduce the loss of assets under your management – tax and estate planning decisions. With a DAF, the donor can choose to gift during their lifetime or beyond to build their charitable legacy and the fund grows tax free.

The donor advised fund can integrate with other planning strategies such as a charitable remainder trust, beneficiary of a life insurance or retirement plan.  This is another advantage of a DAF that makes available assets that the advisor is presently not managing which are illiquid assets.  When the illiquid assets are contributed to the DAF and sold, the advisor would be managing these assets in the charitable fund.  Another way to distinguish your practice and grow your business.

One of the benefits with Hudson Community Foundations Advisor Managed Charitable Funds.... you manage your client’s charitable investments, grow your practice, and earn the loyalty of your clients’ heirs.

We are your partner in charitable giving.  We are here to help. 

Call Amy Jordan to learn more today!

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented, nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced to provide information on a topic that may be of interest.