Starting the Conversation
Professional advisors – investment professionals, attorneys, accountants, insurance agents – play an important role in assisting clients with their philanthropic goals. Oftentimes, these clients have some general ideas about charitable giving, but they seek advice from trusted advisors on how to make their philanthropic goals a reality.
Conversations between charitable-minded clients and their advisors might include the following questions:
- What principles are important to you and your family? How might you leave a personal legacy that reflects these values?
- Are there special charitable organizations that you support through volunteerism or financial contributions?
- Would you like to continue supporting these organizations or causes in the future?
- Have you thought about how you might inspire your children and grandchildren to carry on this legacy of giving?
Private Foundation Comparison
Many people who are financially positioned to provide sustaining support for charitable causes consider private foundations for achieving this objective. Private foundations allow donor control over distributions and board member selection, but are highly regulated by the government. Establishing a private foundation involves an extensive application process with the IRS. Ongoing requirements include the burdens of administration, excise taxes, and a mandatory annual payout of assets.
A simple alternative to establishing a private foundation is creating a donor advised fund with Permian Basin Area Foundation. A donor advised fund is created by a simple written agreement with assets conveyed by a donor who wishes to influence which charitable causes are supported by the fund.
Permian Basin Area Foundation welcomes the opportunity to partner with donors and their professional advisors in creating a customized plan that reflects the donors’ passions and values while maximizing financial, tax, and estate planning benefits.
For further information about the Foundation and the means by which our staff can assist in fulfilling your clients’ wishes to make a living or estate gift that creates a lasting legacy contact Guy McCrary at firstname.lastname@example.org or Aaron Bedell at email@example.com.