Empowering Clients: Harnessing Holistic Solutions
Karen Costa, Family Office Enterprise National Tax Leader at RSM US LLP, brings an impactful perspective to charitable giving strategies and preserving legacy. Costa, originally from Colorado, moved to Texas and has fully embraced her new home, establishing deep roots in the state.
Despite not being a native Houstonian, Costa has developed a deep appreciation for the city’s unique charm. In her role with RSM US LLP, she is often on the go – leading and collaborating with teams who continually seek to support and unite family enterprises in achieving their strategic goals, enhancing their vision, and establishing charitable giving strategies that endure across generations. She has made one notable observation about Texans through her travels: “Texans and Houstonians are so proud of where they come from. From a philanthropic perspective, we really focus on supporting our own backyard. I consistently see this level of engagement with my clients based in Texas through their support of schools, medical organizations, and more. Texans are proud to be from Texas, and Houstonians are equally as proud too.”
Costa’s favorite thing about Houston is its paradoxical nature. To her, Houston is a sprawling metropolis with a small-town vibe. Costa admires the city’s vibrant cultural scene, culinary diversity, and close-knit community spirit. Despite the geographical vastness, Houstonians foster a sense of camaraderie, making it a welcoming environment for newcomers and long-time residents alike.
With two high school students of her own, Costa emphasizes the importance of nurturing the next generation and instilling the values of giving back. This type of coaching naturally occurs through Costa’s work. Whether she mentors younger colleagues or works with clients and their next-gen family members, she understands the importance of educating, preparing, and spending time with the next generation of philanthropic leaders to help light the road.
Costa shared, “Wealthy families and their rising next generation have a tremendous opportunity while bearing a significant responsibility. It is vital to ensure the next and rising gen are thoroughly equipped and at ease as they transition into their forthcoming roles.”
Costa and her team develop deep multi-generational relationships with family enterprises, holistically serving family enterprises across their operating business, family office, and investment structures. Often, philanthropy plays a role in a client’s wealth journey beyond tax efficiencies. Through building deep relationships with her clients, she understands that charitable giving is often woven into the fabric of what her clients want to do.
Greater Houston Community Foundation (Foundation) is a fixture in Costa’s professional circle. The Foundation is more than just a financial conduit for her clients — it educates and collaborates seamlessly to amplify their philanthropic impact. Costa said, “I have had the opportunity to see clients and their family members go through the [Next Gen Donor Institute] program at Greater Houston Community Foundation. It is rewarding to see their excitement and engagement – although they may not have an immediate financial impact, seeing this program’s nonfinancial impact is captivating.”
Costa talked about how, if you are a tax professional in the Houston area, you are missing out on a wonderful philanthropic thought partner by not partnering with the Foundation. Costa serves as the current chair of the Advisor Outreach Committee. This Committee works to positively represent and connect the Foundation with individuals, families, corporations, organizations, and professional advisors to grow effective philanthropy, ultimately designed to increase donor impact on the greater Houston community and the region’s nonprofit sector. The Foundation’s collaborative approach enriches Costa’s advisory services. Costa revealed that the Foundation has assisted her in fostering a network of driven finance, tax, and legal advisors dedicated to serving their clients’ best interests. Costa has been engaged with the Foundation for as long as she can remember. Costa shared, “We [professional advisors] can’t be everything for our clients. Allowing the Foundation to play its role is critical. They [the Foundation] also provide a platform to educate us as advisors. As we all grow our careers and networks, Greater Houston Community Foundation has been incredible at bringing together a group of like-minded professionals to help us serve our clients even better.”
Costa shared, “The Foundation organically becomes part of my client’s trusted circle, especially when I bring them in as a front-end thought partner. I have called them when I am thinking about a potential scenario for a client, and they function as the strong philanthropic leg of the stool I use to support my clients from an advisor’s perspective. When I do not have an answer, they are my go-to philanthropic confidants. I have spoken to them [the Foundation] before I bring a client in on the conversation.”
Costa has numerous success stories where her partnership with the Foundation has enhanced her clients’ financial planning strategies. Reflecting on the times when the Foundation has been most impactful, Costa highlighted pivotal moments such as liquidity events, where her clients undergo a sale of a business or investment. During these critical junctures, the Foundation truly demonstrates its value and shines brightest. The Foundation has helped clients develop strategies for using dollars in a philanthropic way before the liquidity transaction is closed.
When philanthropy is significant to a client, Costa’s profound expertise and proven track record in cultivating meaningful connections ensure they can effect substantial change within the community. Her collaboration with the Foundation further empowers clients to forge enduring legacies and contribute to a more vibrant future for Houston and communities far and wide.