For professional advisors, it’s crucial to guide your clients on the path of tax-efficient charitable giving. In this article, we’ll explore incentives and strategies that can help clients maximise their charitable donations within their local community.
Effective strategies to maximise local contributions while optimising the associated tax benefits:
Encourage your clients to pool resources with like-minded individuals in their community. This collaborative approach can lead to more substantial donations that collectively make a significant impact.
Help your clients incorporate charitable giving into their estate planning. Charitable bequests or legacy giving can reduce the estate’s tax liability while supporting local causes that are dear to them. This can also be a great way for their relatives to stay connected to the person who leaves the gift, all donors with named funds can choose to nominate a family member to represent them on grant-making panels. One Community also offers facilitated visits to the community projects that are funded.
Suggest that your clients consider donating appreciated assets, such as stocks or real estate, to local charities. This strategy can not only benefit the community but also minimise capital gains taxes.
For business owners, explore the potential of corporate philanthropy. Businesses can make tax-deductible donations for their contributions to local community projects.
Take a look at these success stories of companies in Kirklees getting involved:
In conclusion, tax-efficient charitable giving provides an opportunity for your clients to maximise their local contributions while enjoying tax incentives. By utilising strategies such as pooled giving, Named funds, inheritance planning, gifts of assets, and corporate giving, your clients can make a significant impact on their community while optimising their financial situation. As professional advisors, your guidance in this area can help clients fulfil their philanthropic aspirations while making the most of their charitable donations.
Emma has worked as a Philanthropy Advisor and Grantmaker for 13 years, liaising with philanthropists, advisors and charitable organisations in Kirklees and Calderdale. She has been the CEO of One Community Foundation since 2019, steering the charity to award over £1,000,000 to over 300 grantees in 2022-23.
