Tax time is often one of the best times to discuss charitable giving with your clients. That’s because you’re likely reviewing tax returns before they’re filed, helping clients reflect on charitable deductions from the prior year, and evaluating tax planning options for the current year.
Among the many benefits of discussing charitable giving with your clients is that your clients will view you not only as a transactional advisor, but also as a trusted professional who is knowledgeable about local community needs and nonprofits. This is especially the case when you have a working relationship with the Hudson Community Foundation (HCF). What’s more, longstanding research has shown that a proactive advisor who offers options for incorporating philanthropy into financial and estate plans will inspire client loyalty, even across client generations.
An eye-opening range of flexibility and options
Advisors frequently comment that they are surprised to discover the ways HCF can help their clients, especially compared with national donor-advised fund programs affiliated with brokerage houses or financial services firms.
Sometimes the greatest needs really are right here at home, and working with the community foundation is often the best option for ensuring that your clients are informed and impactful philanthropists.
In addition, HCF is unparalleled in its ability to be flexible and responsive, providing outstanding, personal service designed around your clients’ needs while always respecting your role as your client’s primary advisor.
Options for every client’s unique situation
Our team welcomes the opportunity to work with you and your clients to implement their charitable giving goals. Here are just a few of the ways we can work with you as your planning work with clients gets into full swing for 2024:
Wills and Trusts
A client can establish a bequest to a fund at HCF through a will or trust, whether a specific bequest of a certain dollar amount or a remainder bequest of what’s left in the estate. HCF is happy to provide proper bequest language.
Retirement Plan Beneficiary Designations
Bequests of qualified retirement plans can be extremely tax efficient. Funds flowing directly to a client’s fund at HCF from a retirement plan after the client’s death will not be subject to income tax or estate tax. By contrast, these assets are subject to both income and estate tax when they flow to a client’s children, for example, upon the client’s death.
Family Philanthropy
Consider encouraging clients to involve their children and grandchildren in philanthropy, especially when the clients are working with Hudson Community Foundation through a family donor-advised fund or other collaborative vehicle.
Income Tax Planning
Remind clients that they are eligible for an income tax deduction for lifetime charitable gifts, and the gifted assets are no longer subject to future estate taxes.
Complex Giving
Consider more complex giving vehicles, including charitable remainder trusts and gifts of closely held stock. HCF can work with you to establish these structures to help facilitate your clients’ charitable giving goals and meet the clients’ financial and tax goals at the same time.
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.
