Some advisors are reluctant to begin a charitable giving conversation with their client, concerned about making value judgments, especially if the client has not expressed charitable intentions. In reality, identifying your client's philanthropic interests is a wonderful way to deepen the client's trust and strengthen your relationship. This is also an opportunity to develop your relationship with future heirs.
To determine your clients' motivation for and knowledge of philanthropic giving, you might start with these questions.
- What has been the most satisfying charitable gift you have ever made? Why?
- Have you volunteered anywhere? Which volunteer experience has been the most rewarding?
- Of your core values, which would you like to express through your giving?
- When you think of the challenges facing our community, what are your greatest concerns? Are any of these the focus of your current or future giving?
- What have you learned about your giving? Would you do anything differently if you could?
- What role has philanthropy played in your family? Is it what you would like it to be... or would you like to change it? Are your children and grandchildren aware of your philanthropy?
- What would you like to accomplish with your giving? Do you think this is possible?
Philanthropy is a very special decision. As a professional advisor, you can help clients realize their charitable objectives by listening for charitable giving opportunities, explaining options, and suggesting solutions. Significant giving opportunities often arise when clients are making major business, personal, and financial decisions. Our staff can work with you and your client to recommend giving strategies.
Your client can recommend a grant to any organization that is qualified as a public charity under Section 501(c)(3) of the Internal Revenue Code, which includes most faith-based programs. The United States has more 650,000 IRS-approved charities. The Community Foundation will ensure that groups recommended for a grant meet this requirement.
In complying with federal tax laws, and for the protection of your client, the Community Foundation must reject grant recommendations that would benefit an individual, fulfill a personal obligation, support a political campaign, or a private foundation.
A donor advised fund with the Arizona Community Foundation will give your client the opportunity to take part in the grantmaking process without the work and expense of operating a private foundation. Your client can establish a donor advised fund with the Community Foundation with a minimum gift of $25,000. Each year, your client will have the opportunity to recommend grants to community organizations. We perform the due diligence to ensure the recommended grantees are qualified, viable organizations in good standing, and then issue the checks from the fund. Grants are then ratified by our Philanthropic Services Committee. The Community Foundation handles all the paperwork and administration. It's a great way for your client to involve their children and grandchildren in family philanthropy.
The minimum for establishing a fund with the Arizona Community Foundation is $25,000. The minimum to establish a supporting organization is $1 million. Gifts can be made to existing component funds in smaller denominations.
The Arizona Community Foundation has the ability to accept a range of assets including:
- Cash equivalents
- Stocks and bonds
- Business interests
- Real estate, including gland and personal property
- Life insurance policies
- Retirement account assets
Yes. If the donor does not name a successor, or after the successor's passing, the Community Foundation will continue to award the funds in accordance with your client's wishes as articulated in the fund agreement.
The Community Foundation's fees are highly competitive with commercial gift funds, but even more important, the Community Foundation offers your clients unique value including personal service, local knowledge of community needs and the nonprofit sector, and expertise in the philanthropic field.
Establishing a fund at the Arizona Community Foundation is considerably less expensive than starting a private foundation since we handle all administrative details, including filing annual tax returns, performing due diligence on grants, and all details associated with processing and tracking grants. There are also no setup fees.