What You Need to Know
- The pandemic and other events have caused some clients and their families to reconsider their charitable priorities.
- Advisors can be very helpful in helping families plan how, when and how much to give.
- Making grant recommendations as early in the year as possible is very important.
More families will be able to celebrate the holidays together this year than last. Though gathering via Zoom last year was better than not gathering, getting together in person this year will enable families to have more meaningful conversations about their charitable planning for this year and beyond.
The pandemic and other events have caused some clients and their families to reconsider their charitable priorities over the past few years. Fortunately, during these times of great need, donors, especially those who have donor-advised fund (DAF) accounts, have responded generously. American Endowment Foundation DAF donors granted 30% more to charities in 2020 than in 2019 and have already granted 50% more this year. Other DAF sponsors report increases as well.
Some families or individual family members may wish to continue to support the same organizations that they have always supported, while others have already changed direction and supported new causes or charities, adjusted the amounts they granted out to their usual grantees, or want to make additional changes going forward. Though there may be differences between family members, philanthropy can often help to keep them united.
Usually, families want to have this discussion themselves, but it may be beneficial to include a trusted family advisor who has knowledge of the financial, legal or tax aspects of charitable giving. There have been many tax law changes that affect charitable giving in recent years and this year is no different, so advisors may want to talk with clients before or during the family gathering since this may be very helpful.