News for Professional Advisors

The Advisor Resource: April 2021

The Advisor Resource

At the Community Foundation, our goal is to serve as an extension of a professional advisor's team. Offering our expertise in philanthropic planning and community investment, we're here to help build a tailored giving plan that aligns with an individual's interests, values and charitable goals, while also maximizing important tax advantages and key benefits.

The Advisor Resource is an occasional eNewsletter designed to provide attorneys, accountants and financial advisors with helpful resources and information to better serve their clients.

Our April 2021 issue includes:

IN FOCUS: Pandemic Legislation and Charitable Giving

The CARES Act, passed last March, featured several provisions related to charitable giving which remain intact today. One in particular is especially notable:

For 2021, the maximum $300 above-the-line charitable deduction will be measured per taxpayer (rather than per tax return), meaning married couples can deduct up to $600 in charitable giving above the line.

Looking ahead, the Universal Giving Pandemic Response and Recovery Act (S.618/H.R.1704) was introduced to Congress in March 2021, and if passed, would extend this temporary $300 deduction through 2022 and would enhance the CARES Act provision to include gifts to donor advised funds.

If this legislation is passed, the inclusion of donor advised funds as qualified recipients of universal charitable giving would be an important breakthrough. Not only does it recognize these giving vehicles as powerful tools to increase effective charitable giving, it emphasizes that, when paired with the expertise and resources uniquely available through the Community Foundation, a donor advised fund can be a critical component of a philanthropic strategy for an individual, family, or business.

Individually Managed Donor Advised Funds

Donor advised funds are now even more advantageous thanks to the Sioux Falls Area Community Foundation’s Individually Managed Funds program, an offering which allows a donor’s preferred financial advisor to manage the assets of their donor advised fund.

Your investment expertise, our philanthropic planning experience — working together to serve your client.

Want to learn more about how a donor advised fund at the Community Foundation could help your client maximize tax benefits while achieving their philanthropic goals, contact us today!

Trendlines: In the Wake of 2020, Multi-Gen Family Philanthropy Plans Take on New Priority

For many donors, a multi-generational family philanthropy plan is high on their radar, but how do you know when a client’s ready for more formal philanthropic planning?

Watch for candidates among your families which:

  • Have publicly demonstrated a long-term charitable commitment to at least three charitable organizations.
  • Own a multi-generational family business, creating the opportunity for corporate giving and values to serve as inspiration for the family’s charitable plans, even beyond the family’s ownership of the business.
  • Possess the capacity to give more than $25,000 per year to charity and have expressed or demonstrated enthusiasm and willingness to do so.
  • Have family members across two or more generations who have shown an interest in philanthropy.
Once you’ve identified a family who’s a candidate for a more formal philanthropic plan, give us a call. Our philanthropy team is led by CAP-certified (Chartered Advisor in Philanthropy) experts who maintain in-depth knowledge and understanding of the philanthropic process. We can work with you to help your client navigate the process.

One quick note — A common myth is that families who wish to collaborate across generations on grant making and social impact are better suited for a private foundation. Not the case.

The reality is, families can work together to design and execute their philanthropy using a more convenient and tax favorable donor advised fund. When a family establishes a donor advised fund at the Community Foundation, they receive the benefit of our professional staff for insights and analysis on community needs and philanthropic strategies, as well as administrative and technical support required for tax purposes. See a comparison of donor advised funds and private foundations.

Want to learn more about family philanthropy? It’s our specialty! Contact us today.

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