Q: With so many worthy causes competing for attention, how can my husband and I come up with a planned giving strategy that reflects our values?
[michael e. howard, ceo, youthbridge community foundation]
For many people, making a difference is an essential element when it comes to defining, and leading, a quality life. These families should seek out a professional adviser who embraces purpose-driven planning, rather than one who focuses only on tax-driven strategies. A community foundation, like YouthBridge, can work directly with you or with your financial adviser to make sure your planned giving strategies match up with your values. Staff understand local needs and are able to identify well-run nonprofits that serve the causes you care about. Establishing a donor-advised fund is a great first step toward accomplishing your objective. With this type of fund, values-based giving guidelines are established, you participate in current grant-making from the fund, and after your death, the foundation can step in to carry on your legacy by making grants consistent with your guidelines. It’s also possible to involve your family in ongoing grant-making from the fund.
When seeking a wealth adviser, ask about their involvement in the community and pay attention to the questions they ask you. A purpose-driven adviser will want to know about your values and non-financial goals. The Chartered Advisor in Philanthropy (CAP) designation may help you identify advisers who embrace a purpose-driven approach to wealth management.
[christine g. burghoff, director of gift planning, greater saint louis community foundation]
Charitable giving programs are as variable and unique as the individuals who develop them. To get started, determine how much money your family wants to devote to philanthropic plans by taking a look at your household income and savings, your tax situation, your living circumstances and your family’s needs. Meet with your financial adviser, tax preparer and attorney to evaluate your options. Then explore how you would like to make your gifts. Do you want to make the contributions and keep tabs on your gifts and receipts on your own? Or do you want to create a private foundation? The do-it-yourself approach can be time-consuming, and setting up a private foundation can be costly, especially at start up.
Another option is opening a charitable-giving fund at an organization such as the Greater Saint Louis Community Foundation. It enables you to avoid the start-up costs associated with private foundations, and to have as much recognition or anonymity as you desire. An organization like ours handles all the record keeping, as well. Once you’ve determined how to fund your charitable giving program and how the gifts will be made, it’s time to figure out which organizations and causes you and your family would like to support. Professionals can help you review your interests and your options and put a program framework into place.
