Advisors talk giving strategies to celebrate National Philanthropy Day

When it comes to charity, it’s better to give than talk about giving. No debate about that.

That said, November is National Philanthropy Month and Nov. 15 is National Philanthropy Day, so there may be no better time than the present for talking with advisors about the most effective ways to give.  

Charity often begins at home

When it comes to local and trending giving patterns, Florida-based Ryan Quinty, vice president of financial planning at Cyndeo Wealth Partners, is witnessing increased charitable giving to local disaster relief due to Hurricanes Milton and Helene. In fact, one of his clients used his well-known public image to gather $50,000 in donations, which he and his law firm matched dollar-for-dollar for victims.

Likewise, Peter Halbrook and Jonathan Rosner, wealth advisors at Triton Point Wealth, have seen a pickup in local support not just for domestic hurricane relief efforts, but for international natural disasters as well.

Meanwhile, Mark Perrault, president and managing partner at Intergy Private Wealth, has also seen an uptick in local giving, primarily to churches, organizations helping the homeless, and childrens hospitals.

In terms of scheduling charitable events this holiday season, Quinty supports a program at John’s Hopkins All Children’s Hospital in St. Petersburg called “All Kid’s Wonderland.” During this event, children and families who are patients of the hospital get a holiday “shopping experience” that offers them a sense of normalcy and joy over the holiday season without being far from their loved ones who are receiving care.

Managing contributions across multiple causes

For clients interested in supporting multiple causes, Quinty recommends the use of donor advised funds (DAFs).

“We help guide our clients to tax efficient charitable strategies such as donating appreciated stock,” Quinty said. “It is a much easier process for the clients and the charities if we donate the appreciated stock directly to a donor advised fund, which we can then use to issue individual donations to their favorite charities on their behalf.”

Likewise, Perrault focuses on DAFs, as well as other charitable vehicles, often coupling them with Roth conversions. 

“We visually show clients their projected cash flow and many have very significant Required Minimum Distributions (RMDs). Once someone sees that, I think their eyes open up that you want to be in control and give what you can, when you can, and it doesn’t have to all be when you pass away. Why not enjoy the giving today?” Perrault said, adding that many of his older clients like the idea of having a family simplified foundation like a DAF because it engages their children and grandchildren in the giving process.

Along similar lines, Josh Hawkins, partner and vice president at Leverty Financial Partners, has seen a significant increase in the use of DAFs for charitable giving. For his charitably inclined clients, who also held a large portion of their net worth in company shares, he introduced the concept of DAFs using their highly appreciated company stock.

“For several clients, this strategy also aligned well with their transition into retirement, as many had higher taxable income during their working years compared to retirement, thus creating a more valuable deduction,” Hawkins said. “The ability to accelerate their charitable giving has allowed us to manage their retirement cash flow effectively, knowing their charitable needs are covered for the next three to five years.”

Make it a family affair

While it may sound simple, it’s no easy task to get an entire family on the same page, even for charitable giving. As a result, all the advisors said comprehensive philanthropic strategies need to be employed.

Quinty, for example, said that families transferring wealth from generation to generation should focus on building a value structure that can be transferred along with the assets. From that perspective, and based on personal experience, he encourages families to involve their kids in their gifting, if possible.

“My father worked with the Leukemia Society and was the chapter president when I was young. He involved me and my brother starting when I was 7 years old. That work greatly impacted my perspective on giving and the importance of giving to this day,” Quinty said.

Perrault has seen clients make donations into a DAF representing causes their children hold dear and then witnessed those children go to work for those very same causes. 

“America is still a place of incredible entrepreneurism, and it seems that clients feel it’s important to give back to their communities who helped them be who they are today,” Perrault said.

Challenges to charitable giving

The biggest challenge clients often face when donating to charities, Quinty said, is finding ones that resonate with their value system. This requires a great deal of thought upfront. Once the target cause is identified, however, he said the implementation is straightforward. And gratifying.

Perrault agreed, saying some clients are “bombarded with giving requests,” and it can be overwhelming. 

“That’s why we think having a process around why you give and to whom is important,” Perrault said.