Charitable giving can help bridge generations’ definitions of “wealthy”

The recently-released Bank of America Private Bank Study of Wealthy Americans is a must-read (or at least a must-skim) report because it offers insights into shifting views on wealth, and it also highlights a disconnect in inheritance expectations. Notably, younger individuals tend to rally around a definition of “wealthy” in terms of having the means to live a life of purpose and make a difference.

 Older generations are more likely to define “wealth” in financial terms. Important for charitable planning is the finding that older generations may not be planning to leave the inheritance that their children and grandchildren expect. We can work with you and your clients to establish a multi-generational charitable giving plan makes it easier to get expectations out in the open and keep the entire family meaningfully involved in the family’s wealth over the long term. 

Must-know tips for clients’ year-end giving 

We know you’ve got a lot on your plate as the end of the year approaches. Even if charitable giving does not appear on the surface to be a burning issue in client meetings, it’s still crucial that you keep in mind a few essential charitable giving techniques because your clients do care. Please scan these three important techniques, and please reach out to us on any matter related to charitable giving. 

• Encourage clients to consider giving highly-appreciated stock, not cash, to their funds at the community foundation, thereby maximizing tax benefits.
• Help clients evaluate a “bundling” or “bunching” technique to make gifts to donor advised funds at GWCF, exceeding the currently high standard deduction to be able to itemize. Then, donor advised fund assets can be used over the next few years to support clients’ favorite charities.
• Help clients who are 70 ½ and older make Qualified Charitable Distributions (“QCDs”) directly from IRAs to designated or field of interest funds at the Foundation – up to $105,000 per spouse. Plus, QCDs satisfy required minimum distributions! 

Reach out us today! November is the time to set things in motion so you don’t get caught up in the year-end rush. We are here for you.