By John P. Napolitano CFP®, CPA, PFS, MST | Founder & Chairman
In honor of Giving Tuesday
Financial planning is at its best when a client asks us, “Help me find a way to do something that’s deeply important to me.” In that vein, I want to share a recent client story of this sort in the area of charitable giving.
Like many of us, this client has supported an organization that she holds incredibly dear. Their work has impacted her, and she believes in the importance of their work continuing.
While updating her estate planning, she expressed the desire to give more to this organization over the course of her life rather than leaving a larger portion in her inheritance. This prompted the question, “If you want to give more, why aren’t you?”
To her credit, she had wisely assessed that the charity didn’t have the scale, logistics, or experience to effectively steward donations of the size she wanted to provide. To the charity’s credit, they affirmed her concern–they didn’t have the ability to immediately use how much she wanted to give.
I’ll skip to the end here. I just got back from a banquet in Texas where we participated in a moving announcement. Through the questions our client asked, we were able to identify and collaborate with an attorney who specialized in endowments. At that banquet, we had the privilege of announcing the endowment created for this charity that would help protect and advance their impact for years to come.
On a personal note–the leadership our client showed in asking questions resulted in a win-win-win.
- They could give as much as they wanted.
- The charity could utilize the funds progressively, practicing great stewardship.
- The endowment has already attracted other donor support that might not have materialized without the right structure in place.
It’s a heartwarming story, but it has two important takeaways we want all of our clients to remember.
First, endowments might be a useful tool to consider where your desire to give is greater than an organization’s ability to use the funds well right now.
Second, tell us what you want to see happen, even if you don’t know how the technical execution might look. We are here to help design the plans that accomplish your vision. Whether it’s giving, estate planning, tax planning, business ownership, etc.–we are here to make a way.
Happy Giving Tuesday!
