Navigating Charitable Giving: Guiding Your Clients Through the Process

Many people focus on charitable giving in the fall, as they’re eager to make an impact while benefiting from potential tax advantages. This time of year presents a valuable opportunity for professional advisors to engage their clients in meaningful conversations about philanthropy that align their financial strategies with their values.

Guiding clients through charitable giving can strengthen your advisory relationships and support their philanthropic goals. Whether it’s making last-minute donations or planning for the future, discussions with your client about their asset or estate management decisions are more of an art than a science.

Initiate discussions about charitable giving with your clients by focusing on both asset management and estate planning decisions—blending art with strategy. Community Foundation recommends advisors start with the Five T’s of philanthropy to begin discussing charitable efforts with their clients.

The Five T’s of Philanthropy

Each of the Five T’s of philanthropy has an impact on nonprofit organizations. The Five T’s are:

• Time: Encourage clients to invest their time in causes they care about. Whether through volunteering or participating in events, time can be a highly personal way to give back.
• Talent: Suggest that clients use their skills and expertise to make a difference, such as advising nonprofits on financial planning, legal matters or business strategy.
• Ties: Leverage your clients’ personal and professional networks to expand their impact, whether through introductions, networking, or joining nonprofit boards.
• Testimony: Motivate clients to share their personal stories and experiences, inspiring others to give.
• Treasure: Help your clients make the most of their financial contributions by structuring gifts strategically and tax-efficiently.

As you talk through the Five T’s, use the following four conversation topics to deepen charitable giving conversations with your clients.

Ask Purpose-Driven Questions

Kick-starting a conversation about charitable giving requires thoughtful, purpose-driven questions. By asking these questions, you can uncover your client’s motivations and align their giving goals with their broader vision.

• Purpose: What kind of legacy do they want to leave? Are there causes they feel passionate about, such as education, healthcare or the environment? Understanding their interests allows you to tailor their giving strategy to reflect their vision.
• Resources: Beyond financial contributions, how else can they contribute? Are they interested in volunteering, serving on nonprofit boards or offering professional skills? Exploring these options can lead to more meaningful philanthropic involvement.
• People: Who influences their charitable decisions—spouses, children or business partners? Including key stakeholders can help extend philanthropic values across generations.
• Privacy: Do they prefer to give anonymously, or do they value public recognition? Knowing their preference helps you choose the right giving vehicle that aligns with their desires.

Assess the Desired Level of Control

Understanding how much control clients want over their charitable contributions is crucial. Different giving options offer varying degrees of involvement and flexibility:

• Timing: When do they want to see their impact? Some prefer immediate results, while others focus on long-term plans that align with retirement or estate planning strategies.
• Geographic Focus: Are they interested in supporting local initiatives, national organizations or global causes? Clarifying this helps direct their efforts effectively.
• Specificity of Giving: Are they drawn to specific organizations, like their alma mater, place of worship or local charities, or are they more interested in broader causes, such as health or education? This insight guides the selection of the most suitable giving options.

Match Clients with the Right Charitable Giving Tools

After identifying your clients’ preferences and desired level of control, guide them toward the appropriate charitable giving tools:

• Donor-Advised Funds (DAFs): These funds offer flexibility and maximum amount of control, allowing clients to recommend grants over time. They’re ideal for those who want to involve family in their giving decisions.
• Field of Interest Funds: These funds enable clients to support specific causes or geographic areas, leveraging expert guidance to allocate funds effectively.
• Designated Endowments: For clients who want to ensure ongoing support for specific nonprofits, designated endowments provide a dependable, long-term giving option.
• Unrestricted Endowments: These funds allow community foundations to address emerging needs. Although clients relinquish specific grant control, they can trust their contributions will address the most pressing issues.

Access Philanthropic Partners

As the year ends, Community Foundation is ready to assist advisors and their clients in crafting impactful charitable plans. We serve as an extension of your team, offering the expertise and resources needed to expand your capacity to offer personalized philanthropic guidance to your clients.

Whether working directly with you or independently with your clients, we can help develop a philanthropic plan that aligns with their asset or estate management goals. Some of the giving options available for customized plans include:

• Customized Giving Opportunities: Tailor charitable strategies to meet your clients’ unique goals. We allow clients to invest their charitable funds through their preferred investment manager or pooled portfolios.
• Individually Managed Charitable Accounts: These accounts allow clients to use donor advised funds to support causes they care about, allowing you, as their trusted advisor, to manage charitable assets after they are donated.
• Critical Needs: Across our five-county service area (Hillsborough, Pinellas, Pasco, Hernando, and Citrus), we connect clients to impactful opportunities through our critical needs list and competitive grants.

As 2024 draws to a close, leverage the expertise of Community Foundation to help your clients make strategic and meaningful charitable decisions. Partner with us to ensure their giving is effective, impactful and aligned with their values.

Ready to guide your clients through impactful giving? Contact us today to start making a difference together.

Denyve Boyle, CAP®, CFRE, MBA is the Senior Director of Philanthropy at the Community Foundation Tampa Bay. She is an experienced, highly motived professional that inspires philanthropy throughout the community by educating and engaging individual donors, corporations and professional advisors.