Maximize Year-End Giving: A Philanthropic Checklist for Clients  

As we approach the year-end giving season, it’s important to maintain an organized punch list for your meetings with philanthropic clients. Research indicates that an impressive 25% of online donations take place during the month of December. By focusing on several key areas, you can ensure that you’re effectively addressing your clients’ charitable aspirations and optimizing their giving strategies. This article serves as both a checklist and a strategy guide that will help foster fruitful discussions with your clients regarding their charitable giving.  

By partnering with Greater Houston Community Foundation (Foundation), you can extend your expertise in philanthropic planning and offer your clients a comprehensive and tailored approach to giving.   

You and your clients have the power to make a lasting impact on the lives of those in our community. Explore the 2024 year-end giving deadlines as you make your charitable decisions for this year.

Year-End Philanthropy Checklist 

Review Clients’ Charitable Goals:

Engage in conversations about your clients’ overarching charitable objectives. Questions to consider include: 

• What causes are they most passionate about? 
• How much do they plan to give in the short term versus over the long term? 
• What impact do they wish to achieve through their contributions? 
• Are there long-term giving plans that involve their estate? 

Understanding these elements sets the foundation for developing targeted year-end giving strategies. 

Continue reading: Understanding the Changes in Bifurcated Gifts

Explore Various Fund Types:

While donor advised funds (DAFs) are popular, don’t overlook other options available. Discuss fund types such as: 

• Scholarship Funds: Help worthy students achieve their educational goals.  
• Field-of-Interest Funds: Tailored for specific causes like education or the environment. 
• Designated Funds: Support organizations chosen by the donor. 
• Unrestricted Funds: Allow the Foundation to allocate resources as needs arise. 

Our philanthropic advisors are equipped to evaluate and recommend the most suitable fund(s) for each client’s unique situation. 

Continue reading: How to Start a Scholarship Fund

Understand the Community Foundation Advantage:

Inform your clients how the Foundation differs from national providers regarding local focus and deeper community engagement. Highlight benefits such as: 

• Customized philanthropy with local insight. 
• A commitment to supporting regional nonprofits effectively. 
• Tailored philanthropic solutions that mean unique charitable giving needs.  
• Next-generation and family programming and consulting services 
• Access to both a specialized team of industry experts and a broad network of like-minded leading philanthropic individuals and families, local Houston nonprofits, and charitable businesses. 

It’s a well-known sentiment that we are better together. This is especially true when it comes to our philanthropic impact. When you partner with the Foundation, you gain access to both our specialized team of industry experts and our broad network of like-minded leading philanthropic individuals and families, local Houston nonprofits, and charitable businesses — all working together to develop a greater Houston. 

“We started our donor advised fund at the Foundation because our friend, colleague, and tax advisor, Carol Warley, told us this would be the best way to give back with the fewest administrative burdens. The ease of entry, use, tracking of year-to-year giving trends, understanding of tax rules, and deep knowledge of the Foundation continue to set them apart from other donor advised fund providers.”

Dawn Hawley, Foundation Fundholder Since 2006 

Continue reading: Where High-Impact Philanthropy Happens: A Personalized Approach to Giving

Know How Donor Advised Funds Work:

Illustrate the ease of setting up a donor advised fund at the Foundation, emphasizing: 

• Easy to establish and manage  
• Simple paperwork and tax-deductible contributions. 
• Flexibility in granting to eligible charities over time. 
• Opportunities for naming the fund to reflect personal or family values. 
• You can work with your investment manager for funds over $500,000. 
• You can donate non-cash assets such as real estate, business interests, and closely held stock. 

Greater Houston Community Foundation is the preferred partner for donor advised funds in the Houston area. A donor advised fund is a simple, yet highly effective giving tool that allows you to personalize your contributions and recommend grants to the causes most important to you. 

Continue reading: What is a donor advised fund?

Encourage Gifts Beyond Cash:

Educate clients about the benefits of donating non-cash assets like business interests, real estate, and appreciated stock instead of cash: 

• Potential for larger tax deductions based on fair market value. 

• Avoidance of capital gains tax, maximizing the amount available for charitable causes. 

We offer a range of giving options that enable you to support the causes and organizations that matter most to you. Whether you are looking to support a specific cause or organization or leave a legacy for future generations, we’re here to guide you every step of the way. 

Continue reading: Tips for Year-End Giving

Supercharge Tax Benefits Through Bunching:

Guide clients on how to maximize tax advantages using a “bunching” strategy—combining multiple years’ worth of giving to increase itemized deductions in one year while maintaining ongoing charitable support. 

Continue reading: Should I Be Bunching Charitable Donations?

Case Study: The Lee Family Fund 

Meet the Lee Family—committed philanthropists dedicated to causes that support children in their community. Each year, they set aside an amount for charitable giving, but they often felt overwhelmed by the number of requests they received. After thoroughly discussing their charitable goals, their advisor suggested they establish a donor advised fund at Greater Houston Community Foundation. Here is a look into how they navigated that process:  

Step 1: The Lees identified their passion for initiatives that support children, especially programs aimed at underprivileged youth. They aimed to contribute $50,000 annually and intended to increase their giving over time. 

Step 2: After reviewing various fund options, the Lees decided on a donor advised fund, which allowed them flexibility in suggesting grants to organizations that met their criteria while keeping their giving local. At the recommendation of their advisor, the Lees engaged with the Foundation to discuss further. 

Step 3: Our philanthropic advisors highlighted the advantages of having a community foundation handle their DAF. This included local expertise in identifying effective organizations, the ability to donate non-cash assets, and the ability to remain anonymous in their giving if desired. 

Step 4: Within weeks, the Lees had their fund established. They transferred appreciated stocks valued at $70,000, which allowed them to avoid capital gains tax while gaining a sizable tax deduction based on the market value. Using the bunching technique, the Lees chose to contribute a larger sum one year, which enabled them to itemize their taxes more effectively.  

Over the next few years, the Lees granted funds to local schools, youth enrichment programs, and educational scholarships. Their strategic approach to high-impact philanthropy not only provided crucial resources but also ignited hope and opportunity for many young lives. 

The case study presented in this blog is a fictionalized account of real-world business scenarios created for educational purposes only.

High-Impact Philanthropy Happens Here 

Philanthropy is a continuously evolving conversation with your clients—not just a year-end discussion. By remaining proactive and informed, you can help your clients achieve their financial and charitable goals. Our philanthropic advisors are here to assist you every step of the way, ensuring that your clients’ philanthropic endeavors make a lasting impact in our communities. 

Let’s connect to discuss how we can maximize your clients’ year-end giving! Contact Kevin Pickett, Chief Advancement Officer, to learn how we can partner with you and your clients.   

More Helpful Articles by Greater Houston Community Foundation: 

• How to Give Back to Your Community
• 3 Tips for Keeping Your Advisors in the Loop for Maximum Impact
• The Community Connector: Arcy Muñoz
• The Surprising Benefits of Philanthropy on Your Well-being 
• What Are Qualified Charitable Distributions?
• What to Do with an Inheritance
• The Future Is Now: What Is Next-Gen Philanthropy? 

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