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Philanthropy Without Compromise: Elevating Philanthropy for High-Net-Worth Individuals and Families 

Aug 12, 2024

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When it comes to estate and financial planning, you understand the importance of tailoring a customized approach to each client’s distinct situation and goals. But what about charitable planning? Your clients deserve the same level of personalized attention and strategic guidance as they navigate their charitable giving journey. 

Everyone has a unique philanthropic story, with their values, priorities, and financial circumstances influencing their approach to giving. Some may be passionate about supporting specific causes, while others may be focused on leaving a legacy through a family foundation. Whatever the case, your clients require a philanthropic plan that is as unique as they are. 

At Greater Houston Community Foundation (Foundation), we recognize that no two philanthropists are alike. That’s why we offer a diverse range of charitable giving vehicles and services designed to meet the needs of our clients. From donor advised funds to scholarship funds, we have the tools and expertise to help your clients achieve their philanthropic goals. 

Donor Advised Fund

A donor advised fund (DAF) enables your client to establish a specific account for charitable giving. Your client makes tax-deductible contributions to the fund, and then recommends grants to favorite charities.  Tax-deductible assets include cash, publicly traded stocks, bonds, other securities, securities, business interests, life insurance policies, real estate, and many other appreciated assets. 

  • Foundation Tip: At the Foundation, you can continue to manage your client’s investments when they open a fund with $500,000 or more. 

Continue reading: What is a donor advised fund?

Unrestricted Fund

The Foundation has its finger on the pulse of the community’s most pressing issues. An unrestricted fund gives your client the opportunity to support community needs that can’t be identified until the future. One of the biggest benefits of the Foundation is its perpetual structure that allows clients and their families to offer support to nonprofits that evolves over time as priorities in the region shift.  

Field-of-interest Fund

Clients who want to target their giving to specific areas of community need (such as education, health, environment, or the arts) can establish a field-of-interest fund to set parameters for grantmaking under the ongoing guidance and expertise of the Foundation. 

Designated Fund

A designated fund allows a client to direct giving to a specific nonprofit organization or purpose. Over time, the Foundation manages the distributions from the fund according to the terms established by your client. 

Agency Fund

An agency fund is like a designated fund, except in the case of an agency fund, the source of the initial contribution is the beneficiary nonprofit organization itself, not a donor(s) as is the case with a designated fund. If your client serves on boards of directors of charities, they’d likely be interested in learning more about agency funds.  

  • Suppose you represent nonprofit organizations and their board members in your practice, it’s helpful to keep in mind that organizations frequently establish agency funds at the Foundation to set aside endowment reserves or rainy-day funds. The Foundation’s philanthropic advisors are adept at navigating the specific accounting standards that are unique to this type of arrangement. 

Scholarship Fund

Clients can establish scholarship funds to support students’ educational pursuits based on the parameters and application requirements they outline with help from the experts at the Foundation. 

  • Foundation Tip: If you represent clients aged 72 and older, consider recommending a Qualified Charitable Distribution from a client’s IRA to a fund at the community foundation. All the fund types noted above are eligible recipients, except for donor advised fund.

Continue reading: How to start a scholarship fund?

Partner with Us: Unlock Your Clients’ Charitable Giving Potential 

As a trusted advisor, you understand the importance of providing your clients with personalized guidance and support. By partnering with Greater Houston Community Foundation, you can extend your expertise in philanthropic planning, offering your clients a comprehensive and tailored approach to giving. Think of the Foundation as the philanthropic arm of your firm – your go-to partner for your clients’ giving needs.  

By working together, we can help you: 

  • Enhance your relationships with high-net-worth clients 
  • Provide a unique value proposition to differentiate your practice 
  • Offer a comprehensive approach to financial planning, including philanthropic planning 

Contact Andrea Mayes, Senior Director of Charitable Solutions today to learn how we can partner with you and your clients. Our expert team of philanthropic advisors can provide personalized guidance and support to help you deliver exceptional results. 

More Helpful Articles by Greater Houston Community Foundation: 

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