By Johnny Garstka, Financial Advisor with The Harvey Group and a native of Springfield, Virginia.
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More and more often, philanthropic families are working together across generations to build lasting legacies to support the causes they care about. At the same time, the common communications challenges between parents and their adult children don’t magically go away, and sometimes advisor relationships get damaged in the crosshairs.
Advisors are often acutely aware of this dynamic; studies consistently show that the majority of heirs fire their parents’ advisors. Fortunately, many advisors discover that philanthropy is an excellent tool for preventing this from happening. That is because philanthropy planning is an effective way for an advisor to engage a client’s children and grandchildren in conversations and begin to build relationships that can survive well into the future.
As you embark on building cross-generational relationships through philanthropy planning, please reach out to the Community Foundation for help. They can provide a neutral environment for working through the inevitable rough spots between parents and adult children. According to Jane Adams, a columnist for Psychology Today, these rough spots can include adult children feeling that their parents routinely offer unwanted advice, think they know everything, bring up unwelcome subjects, invoke feelings of guilt, and generally “push their buttons.” The team at the Community Foundation can help you develop and implement a family charitable giving plan for your clients that will stand the test of time and make a difference in the community.
Multi-generational planning is especially important right now. The Tax Cuts and Jobs Act of 2018 (which seems like a long, long time ago!) included several changes to the tax rules for individuals that are set to expire after the close of the 2025 tax year. Unless those provisions are extended, the sunsets could impact tax planning for philanthropic families and individuals. For example, the standard deduction will decrease by nearly half, adjusted for inflation. This means some clients may once again itemize their deductions, thereby influencing charitable giving income tax strategies. In addition, the estate and gift tax exemption amount, increased under the Tax Cuts and Jobs Act, will be cut down so that in 2026 the exemption amount will be approximately $6.2 million adjusted for inflation. This will impact not only estates valued above the current exemption amount of $12.06 million but also estates valued in the $6 to $12 million range. Because assets transferred through lifetime gifts and bequests to charitable organizations are not subject to gift or estate tax, philanthropy may be an effective tax planning tool for even more taxpayers after 2025.
As your clients begin to set their philanthropic goals for the next several years, it may be worth reaching out to the team at the Community Foundation, who can help structure long-term strategies to maximize not only your clients’ tax benefits, but also the benefits to the community across generations.
One local organization that is near and dear to my heart is the Alexandria Seaport Foundation. Below is an excerpt from their website that explains how the organization serves their apprentices in Alexandria, VA:
“The Seaport Foundation’s Apprentice Program uses the craft of woodworking and traditional boatbuilding as an immersive experience that teaches technical skills and habits of mind that are needed for success in employment and adulthood. Apprentices work alongside experienced woodworkers, carpenters, boat builders, and mentors who teach and challenge them each day.
Our goal is to provide a life-changing, hands-on learning opportunity for young people, ages 17-23, who have struggled with significant obstacles and are eager to get on a path to success. The young people we serve need a shot at creating a good life. Many have had issues with law enforcement, some have not succeeded in school, and some suffer from anxiety or depression. All of our young people have lost their path to success and need a nurturing environment to learn, grow, gain confidence, and build a new and firmer path.”
This is just one example of the countless charitable organizations in the Northern Virginia area that our clients can support with their financial resources, while also receiving tax breaks.
I have really enjoyed working with This email address is being protected from spambots. You need JavaScript enabled to view it. from the Community Foundation to date and look forward to our continued work together to better the Northern Virginia community as time goes on. If you have not had the chance to sit down with him one-on-one to learn more about the Community Foundation, I cannot recommend enough that you take the time to do so. It will be well worth your time!
Johnny Garstka is a Financial Advisor with The Harvey Group, and a native of Springfield, Virginia. *Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.
For any questions or comments, please reach out to This email address is being protected from spambots. You need JavaScript enabled to view it., Director of Development.
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