Is Giving Through the Foundation Right for Your Clients?
The Shelby Community Foundation 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 Foundation. 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 or multiple charitable interests. When making a gift to the Foundation, donors are not really giving to the Community Foundation – they are giving back to the Shelby Township Community 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 Shelby Community Foundation 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.
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.
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 grant making 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.
