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Boulder Daily Camera
Making Money Matter
by Enid Ablowitz
 

June, 2004

Gift Planners

There is a burgeoning industry of experts who will help you plan your philanthropic gifts: attorneys, accountants, financial planners, estate planning advisors, trust officers, insurance agents, fundraisers, and probably a few more I haven’t mentioned.  Giving can be simple, or it can be complex, and the complexity can come in many forms.  All of these gift planners come to the table with their own perspectives, and biases, and with varying degrees of knowledge related to the techniques and instruments of giving.  There is one thing, however, that they can’t know, and that is what is in your heart and mind.

Unless you’ve had ongoing conversations about your personal philanthropic goals, your attorney might not know how you feel about giving, whether to family or to non-profits, and your accountant might only be thinking about tax issues.  In fact, there is a hierarchy of concerns that most professionals will think about when helping you plan charitable gifts.  It looks like this:

            Financial Considerations

            Tax Incentives and Constraints

            Non-profit cause/institutional relationships

            Life Stage of Donor

            Special Family Issues

            Psycho-social/spiritual issues

Interestingly, that hierarchy generally looks quite different from the donor’s point of view:

            Psycho-social/spiritual issues

            Special Family Issues

            Life Stage

            Non-profit cause/institutional relationships

            Financial Considerations

            Tax Incentives and Constraints

Notice the differences in the order.

Of course some planners have a more personal relationship with their clients and may truly be donor advocates, and some donors may start with financial considerations and work through the hierarchy differently. Recognizing these issues as part of the planning for any major gift commitment is important to a successful process.

Gift planning professionals bring a wealth of information and strategy to the table, and can be of significant assistance as you work through what you want to accomplish, but there is some homework you need to do first. Then, communication is critical:  with your spouse or partner, possibly with your heirs, and certainly with your advisors if you are to get the best possible advice.  The more they know about your goals, the better they can help you reach them. 

Here are some examples of issues that might be considered:

Psycho-social/spiritual:  “I want to be remembered.” “I want to share my success with others.” “I need to make things right.” “My faith motivates me to give.”

Family Issues:  “My spouse needs to feel secure.”  “I need to take care of my parents or special-needs child.” “I don’t want my kids not to have to work.” 

Life Stage:  “It’s time to downsize.”  “I have enough money, but I want to do something meaningful in my retirement.”  “I’m ready to give the business to my son.”

Non-profit cause/institutional relationship:  “Scholarships got me through school. Now it’s my turn.”  “I want to help find a cure for juvenile diabetes.”

Financial Considerations:  “I need to diversify my portfolio and generate income without paying a huge tax bill now.”  “My family doesn’t want the cottage and it’s costing me a bundle every year in taxes and maintenance.”  “How much would it cost to create a fund to make my annual gift even after I’m gone?”

Tax Considerations:  “I hate taxes, but I hate complexity even more.”  “But my estate is not taxable, is it?”  “I’d rather give it to charity than to the government.”

 Gift planning solutions can range from the use of charitable trusts (from simple to very complex) to the thoughtful planning of bequests, to outright gifts of unused or underused assets.  How much, to whom and when to give is unique to each giver.  There are advisors who can guide you as you explore your options.  Just be sure you have explored your motivations and your needs first. 

Taking some liberties and extending Shakespeare’s famous advice: “know thy (giving) self.”

Enid Ablowitz is the Vice President for Advancement at the University of Colorado Foundation, Inc., and Director of Advancement for the Coleman Institute for Cognitive Disabilities.  She has been working as a donor advocate for nearly 15 years and has written a book for donors called Making Money Matter:  Eight Steps to Thoughtful Giving. For information on how to obtain a copy, contact her at enidablowitz@hotmail.com.

You may contact Enid Ablowitz by email at enidablowitz@hotmail.com

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