As the field of wealth management continues to see growth in robo-advising and digital platforms, the ability to add value to the client relationship by offering a higher level of service is more important than ever. Advisors who take the time to get to know their clients can use this deeper knowledge to create a holistic plan that will help clients achieve their overarching goals,beyond just achieving portfolio performance. The ability to have informed conversations about charitable giving is a significant piece of creating a holistic plan. Year-end is always a good time to make charitable contributions, but helping clients do this in the most effective manner is critical. For almost five decades, JCF has been a leader in philanthropy, and as a non-commercial donor advised fund, we are conflict-free and always available to help you and your clients. Here are a few tips to help your clients give smarter:
TIP 1: Make a significant contribution now to JCF by “bunching” what the client would have contributed to charities over the next two to three years, enabling your client to reach the threshold to itemize their return and qualify for a maximum 2018 tax deduction. A JCF charitable giving fund can be established with a minimum of $5,000. Our fundholders have the flexibility to donate money to their charities (secular and non-sectarian) over time on their own schedule, as there is no annual minimum distribution requirement*.
Tip 2: Donating appreciated long-term securities to maximize clients’ tax savings.
Clients can transfer stock (via DTC) to JCF before year-end and receive an acknowledgement for a 2018 tax deduction. They may claim a fair market value deduction up to 30% of AGI. Furthermore, the client is not subject to a capital gains tax on the appreciated portion of the contribution.
Tip 3: Use the asset that is most advantageous for your client.
JCF accepts (on a case-by-case basis) private stock, real property and other complex assets. Assets can be accepted from a variety of trust vehicles, and private foundations. If clients are worried about making the required distributions from their private foundations, it is quick and easy to create a JCF charitable giving fund. The gift to establish the JCF charitable giving fund qualifies for the required distribution and the client avoids any excise tax or penalties.
Tip 4: DAFs can be a cost-effective and streamlined alternative to a private foundation. While philanthropists at every level find the DAF to be the easiest and most flexible tool for their giving, JCF’s charitable giving funds are increasingly being used by high-net-worth families as an alternative to, or in addition to, private foundations. Not only is using JCF more cost effective,and easier; using JCF also protects your clients’ privacy. Individual fundholders are not subject to public disclosure, since JCF reports in the aggregate.
JCF is one of the top 10 donor advised funds in nation. Philanthropy is the only thing we do, so if your clients are looking for the optimal way to organize their charitable giving with the highest degree of flexibility and personal service, a JCF charitable giving fund is the answer.