Engaging Clients at All Levels of Charitable Giving

by Catherine F. Schott Murray, Esq., Odin Feldman Pittleman

Many attorneys, CPAs, and financial advisors will share that one of the reasons their clients love working with a community foundation is because the foundation is truly part of the community.  Whether a client has established a multi-million dollar field-of-interest fund, an endowed fund or a donor-advised fund to organize thousands of dollars of annual charitable gifts, a client gains full access to a community foundation’s charitable giving expertise and deep knowledge of the needs in the region in which they live or the specific mission and vision they want to support.

It is because of a community foundation’s approach that donors and advisors find it so heartwarming to see stories about philanthropy hit the mainstream media. This is especially the case with recent reports about the rebound in charitable gifts from the 50 most generous philanthropists in the U.S.  After a decline in donations in previous years, in 2024, these individuals collectively donated approximately $16 billion, marking a substantial increase. This resurgence highlights the continued commitment to support various causes and charitable initiatives by individuals and families.

Moreover, it is not just the most affluent donors who are making a difference. Families at all economic levels are taking steps to organize their charitable giving activities. You may be observing a trend among clients that donor-advised funds, for example, are becoming more popular, and you would be correct!  Donor-advised funds at community foundations and national financial institutions have experienced substantial growth over the past decade, with total grants nearly doubling in the last five years.

With this growth, the Community Foundation offers a local option for clients who want to get started with a structured and intentional approach to their philanthropy through the establishment of a donor-advised fund or endowed fund. Such a fund at the Community Foundation for Northern Virginia offers clients several benefits:

Personalized Service and Local Expertise

First, the Community Foundation can provide personalized service, inviting clients to interact with local experts who understand the community's needs or have the latest updates for a particular field of interest.  Tailored advice on grantmaking to support the causes clients care about is tremendously valuable.  Additionally, a community foundation’s local focus ensures that administrative fees support local initiatives.

Furthermore, families are looking at instilling their philanthropic aspirations to future generations through family legacy giving, giving circles and volunteer service work.  The Community Foundation can help connect a family to the relevant non-profit or non-profits that meet the family’s goals and objectives.

Flexibility and Customization

Second, the Community Foundation can offer a range of options for a client’s donor-advised fund as well as other types of funds, including endowed or non-endowed options, allowing clients to choose how they want to organize and manage their philanthropy. Plus, through a donor-advised fund, a client can support a full range of qualified public charities, locally, nationally, and globally, providing flexibility in a strategic giving strategy and building the family legacy.

Tax Benefits and Administrative Efficiency

Lastly, as tax season draws to a close, it is important to remember that a client's contributions to a donor-advised fund are eligible for immediate tax deductions, and assets can grow tax-free, maximizing the impact of donations. The Community Foundation also handles all administrative tasks, such as record-keeping and tax reporting, and therefore, simplifies the giving process for clients.

Thus, as time marches forward and attorneys, CPAs and financial advisors continue to work with their clients including having discussions about charitable giving, do keep in mind that the Community Foundation can offer a solution that meets both a client’s tax and estate planning goals and a client’s objectives for supporting their favorite charities. At the very least, the Community Foundation can point a client in the right direction and make a connection that truly benefits the community.

The Community Foundation team is happy to help you structure charitable giving tools and plans to achieve your clients’ philanthropic goals—whether through beneficiary designations or any other type of charitable giving vehicle. This email address is being protected from spambots. You need JavaScript enabled to view it.!

The information contained in this article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.