What motivates people to give their hard-earned, carefully saved dollars? The inspiration may stem from a sense of gratitude or the influence of family or friends. It may arise from deeply held values or ideals, or from more pragmatic financial objectives.

The reasons for giving are varied, as are the goals donors hope to achieve. Some believe giving is a choice, others see it as a moral imperative. Some give gifts in a spirit of reciprocity, others give expecting nothing in return. Some are concerned Fwith maximizing tax benefits; others want to optimize social change.

To accomplish such divergent goals, people may give through their church, alma mater, hospital, social events or special campaigns… nonprofit organizations, charitable funds or foundations. They may give to alleviate immediate needs or foster long-term improvement. Some choose to construct new buildings, others to support human services. Some seek recognition; others are looking only for results.

Fortunately, there are as many ways to give as there are motivations for giving.

Recommending the Best Option

As a professional advisor, you can help your clients select a giving option that aligns with their personal motivations, philanthropic objectives and financial goals.

Over the past decade, the trend in lifetime giving has been the establishment of Donor Advised Funds, which offer immediate tax deductions and ongoing involvement in making charitable recommendations. While some donors may be attracted to the prestige of a private foundation, many value the full service support of a community foundation Donor Advised Fund.

However, clients’ needs may change during different stages of their lives. A family may want to direct most of its charitable giving to organizations they know, while an aging widow may be interested in establishing an endowment targeting a special area of social change. Retirees may want to give and volunteer, while a working professional might want to invest for the greatest impact.

Community foundations offer great giving options. Examples of funds that your client can establish are listed below, as well as potential community foundation services:

Field of Interest Funds: connecting personal values to high-impact opportunities. Assessing needs, accepting and processing grant applications, researching solutions, recommending and awarding grants, documenting results, providing customized donor reports, donor recognition and legacy programs.

Unrestricted Funds: meeting ever-changing community needs. Assessing all community needs and opportunities and services similar to Field of Interest Funds.

Supporting Organizations: high impact, high involvement, low hassle. Administrative support, investment management, research, governance and grantmaking resources.

Donor Advised Funds: a personal approach to giving. Donor services, investment management, grant recommendation and validation and grant processing.

Designated Funds: helping local nonprofit organizations sustain and grow. Complex gift acceptance, endowment management and annual disbursements.

The Art of Gift Planning

Like matchmakers of old, professional advisors are called upon to listen closely, interpret carefully and counsel wisely … always hoping to recommend a solution that will be the perfect fit. The profiles below show how different charitable solutions may suit the unique circumstances of individual donors. Most are available through your local community foundation.

* Donor profiles in table are based on The Seven Faces of Philanthropy by Russ Alan Prince and Karen Maru File.

For more information to help your clients create custom giving solutions, contact your local community foundation at www.communityfoundations.net.

© 2007 COF