TRANSCRIPT of Charitable Giving and Philanthropy:
I’m Cary Stamp and this is a Principled Wealth Moment.
Most of the families that we work with are charitably-inclined. One of the things that a lot of people don’t realize is, with the new tax laws, there are some ways that you should be making your charitable contributions that are far more effective for you from a tax perspective and can also add some significant value to your family. Often, we will use appreciated securities that our clients own to make a contribution to what’s called a “donor advised fund” in which the family can control the distributions.
Those funds can then be used to make the world a better place and advance whatever that family’s charitable mission is. The other thing that we can do with those funds is the family gets to control how they’re invested. And a lot of times, I love to use those family donor advised funds as a way to teach their kids about how to make investments. If there’s a significant amount of money in the fund, we’ll often give the children of the donors the ability to pick a stock or two, so that they can watch what’s going on in that portfolio. We’ll also talk to them about how we would assemble a portfolio based on the objectives of the fund and how much gifting is going to be made from that fund over the coming years.
It’s a great way to get the second and third generation involved in learning about investments. And if they get to make the selections, trust me, they’ll be far more interested in watching, paying attention, and seeing how the markets do. And if they do that, they’re going to learn about finances, and that’s something that’s very good for our wealthy families
I’m Cary Stamp. And this has been a Principled Wealth moment.
