For Advisors

Is Giving Through the Foundation Right for Your Clients?

The Community Foundation of Greater Rochester provides your clients with a simple, powerful and highly personal approach to giving. The Foundation offers a variety of giving tools to help people achieve their charitable goals. They can make a gift of cash, stocks, bonds, real estate or other assets to the Community Foundaiton. Most gifts to the Foundation are eligible for federal tax deductions as well as the Michigan Community Foundation Tax Credit.
 
Your clients may select one charitable need, one agency, or multiple charitable interests and agencies. When making a gift to the Foundation, donors are not really giving to the Community Foundation – they are giving to the Greater Rochester area through the Community Foundation. You may suggest donating through the Community Foundation without appearing to favor any one particular charity.
 
 
Listening for Charitable Opportunities
As a professional advisor, you can help your clients realize their charitable objectives by listening for charitable giving opportunities, explaining options and suggesting solutions. Significant giving opportunities often arise when clients are making major business, personal and financial decisions. The Community Foundation of Greater Rochester can answer any of your questions and explain how we can help you realize your clients philanthropic vision. Following are some common charitable giving opportunities:
 
Year-end tax planning
Your client just earned a large bonus and wants to give a portion back to the community, but has no time to decide on the most deserving charities. Recommend establishing a Donor Advised Fund through the Community Foundation for an immediate tax deduction, and the ability to stay involved in recommending uses for the gift for years to come.
 
Preserving an estate
Estate planning identifies significant taxes going to the IRS, but your client wants to direct dollars for local benefit. The Community Foundation can work with you and your client to reduce his/her taxable estate through a charitable bequest or other planned gift. Your client's gift will create a legacy of caring in the community that stays true to his/her charitable intent forever.
 
Retiring in comfort
Your client is concerned about running out of money during his/her lifetime, but has always been charitable. Recommend establishing a life income gift (such as a charitable remainder trust) at the Community Foundation that pays income potentially for life. Upon your client's death, the gift can be distributed by the Community Foundation in accordance with his/her charitable interests.
 
Establishing a private foundation
Your client is thinking about establishing a private foundation, but is looking for a simpler, more cost-efficient alternative. The Community Foundation can help you and your client analyze the pros and cons of creating a Donor Advised Fund, a supporting organization, or a private foundation.
 
Closely held stock
Your client's personal net worth is primarily tied up in a closely held company, but it's important for him/her to give back to the community. Recommend establishing a Donor Advised Fund or planned gift; your client is eligible for a tax deduction measure by the fair market value of appreciated stock (less any planned gift value).
 
Sale or disposition of highly appreciate stock
Your client has appreciated stock and wants to use a portion of the gains for charitable giving, but the identified charities are too small to accept direct stock gifts. Suggest establishing a fund at the Community Foundation with a gift of appreciated stock. Your client receives a tax deduction on the full market value, while avoiding the capital gains tax that would otherwise arise from the sale of stock. Your client can even be involved in recommending uses for the gift, including the organizations and programs he/she cares about most.
 
Sale of a business
Your client owns highly appreciated stock in a company that is about to be acquired. The Community Foundation can work with you to suggest several ways to structure a charitable gift (including theuse of planned giving techniquest) to help you client reduce capital gains tax and maximize impact to the community.
 
Strategic giving
Your client is passionate about helping meet a specific community need and wants to make a meaningful gift. You and your client can from our grantmaking expertise to understand community needs and programs and then direct gift dollars to make the greatest impact.
 
Substantial IRA/401(k) assets
Your client wants to leave his/her estate to community and family, and has substantial assets in retirement accounts. The Community Foundation can help you and your client evaluate the most beneficial asset distribution to minimize taxes, giving more to his/her heirs and preserving charitable intent.
 
 
Planning Charitable Giving
 
Many clients want their professional advisors to help them plan charitable giving. The Community Foundation of Greater Rochester can work with you to answer these questions and help each client fulfill his/her charitable goals.
  • What are your clients personal motivations for charitable giving?
  • What are your clients charitable interests in the community?
  • What are your client's priorities when focusing on a few areas may make the greatest impact?
  • What level of involvement does your client want to have in identifying charitable uses for his/her gift?
  • What type of giving instrument best fits your clients financial situation and tax status?
 
Disclaimer
The Community Foundation of Greater Rochester is not engaged in providing legal or tax advisory services. This purpose of this website is to provide accurate information of a general nature. The Foundation suggests that donors consult with their personal legal and financial advisors for specific advise on the legal and tax consequences of any gift arrangements under consideration.