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The Advisor Resource: September 2020

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 September 2020 issue includes:

The Depot at Cherapa Place, home to the Sioux Falls Area Community Foundation

Choosing the Right Philanthropic Vehicle for Your Client

Comparing Private Foundations and Donor Advised Funds

If your client is considering a private foundation, or looking to dissolve one, it’s wise to take a moment to help them compare their options.

For many, a donor advised fund at the Community Foundation is a better choice than a private foundation. Administrative costs are lower, tax deductibility and privacy options are greater, and donors can take advantage of our team of experts to help with impactful grantmaking and other philanthropic strategies.

We put together a comparison chart to help distinguish the similarities and differences between a donor advised fund held at the Community Foundation and a private foundation.

Often times, you'll find a donor advised fund is a more flexible option with the same benefits as a private foundation. Plus, you'll have the advantage of the Foundation's expertise on your side.

Learn more about comparing private foundations and donor advised funds.

working with a professional advisor

Pandemic Sparks Renewed Interest in Estate Planning

Foundation Sees Uptick in Requests for Charitable Estate Planning

The year 2020 has taught us many things, one of which is to plan ahead. Planning for the unexpected can make the unexpected easier — if, and when, it arrives.

Here at the Foundation, we continue to see an uptick in requests for Charitable Estate Planning assistance. We're hearing from a number of professional advisors whose clients are taking a fresh look at their wills and/or estate plans to ensure the charitable organizations and causes they care about today will continue to be supported after their lives.

Other advisors tell us their clients want to include charitable gifts in their estate plans, but they don’t know which local charities or causes to designate. These are individuals who want the assurance of knowing their gifts will make a meaningful difference after their lives, creating a lasting legacy that's reflective of their passions, interests and spirit of care.

We can help.

We're here to work with your clients as an extended member of your team, helping to create a plan to both maximize tax savings and match your clients' intent. We are experts in working with a variety of planned giving options, including:

  • Bequests
  • Retained Life Estates
  • Life Insurance Policies
  • IRA/401K Plans
  • Charitable Lead Trusts and Charitable Remainder Trusts
  • Charitable Gift Annuities

In addition, our roots in this community run deep, so we’re committed to understanding its challenges, identifying its needs and exploring opportunities to help build a better tomorrow. This local knowledge is what maximizes your clients' charitable giving, ensuring their gifts make the greatest impact possible.

Contact our team to learn more about how we can help.

Feeding South Dakota Food Drive
Volunteers from Feeding South Dakota load food into a car during an Emergency Food Distribution in Sioux Falls earlier this summer. Feeding South Dakota is one of more than 30 local nonprofits who are recipients of the Foundation’s COVID-19 Response Grants.

IN FOCUS: The Pandemic's Impact on Nonprofits

Local nonprofits strive for resiliency, adaptability in the face of COVID-19

Over the past few months, we’ve all been bombarded with numbers. Every day we’re given the number of new COVID-19 cases, deaths, hospitalizations, recoveries, etc. We’ve seen charts of every variety. Lines have been flattened and spiked countless times. It seems like the continuous onslaught of numbers can sometimes have a numbing effect.

Rather than sharing numbers, we're taking this opportunity to share words — words we hear most often when visiting with non-profit leaders. Words like Scared. Anxious. Unsure. Exhausted.

The reality is, operating budgets for most nonprofits rely on charitable support. However, we know the pandemic has impacted charitable giving. According to the Chronicle of Philanthropy, giving declined six percent during the first quarter of 2020. That translates to $5 billion in lost revenue to nonprofit organizations.

Locally, we know that many small- to mid-sized nonprofits simply do not have the financial resources to weather the loss of revenue for more than a few months. While most have survived up until now, there is a lot of anxiety about how they’re going to make ends meet over the next 6-12 months.

As a professional advisor, one of the most important ways you can help your clients support the charities they care about is to keep your clients informed about the complex challenges facing our social sector today. Our Community Investment team is here to help answer questions and provide resources to share with your clients to help them support the causes they love.

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