As a trusted advisor, your clients look to you for guidance and advice when crafting long-term financial plans. Understanding your clients’ charitable interests and passions can provide a unique opportunity for you to expand your relationship and help create a long-term strategic plan that also impacts their favorite charitable causes.
If you want additional insights for guiding your clients through the development of their charitable plan, Vanguard Charitable has gathered five best practices for philanthropists, drawing on years of experience working with donors and charities. These best practices are posed as questions below to help your clients consider the effectiveness of their philanthropy. The answers can serve as a guide for developing giving strategies and ensure that, over time, clients can optimize their donations, expand their giving, and fulfill their charitable plans.
1. How do I define charitable success?
Help your clients identify their charitable goals and how they will measure progress and achievement. Creating a mission statement is a great way to help define their purpose for giving and identify goals and methods to gauge progress.
2. How does charity fit into my overall financial plan?
In the broadest sense, individuals end up giving discretionary assets—i.e., their wealth—to three main areas: other individuals, the government, and charity. You can help your clients understand how giving to each area connects to estate and tax plans, and plays a role in managing a financial windfall. By helping your clients be savvy with when and what to give, you can help them diversify an existing portfolio, minimize tax repercussions, and optimize giving.