The Tax Cuts and Jobs Act, signed into legislation in late 2017, eradicated a number of tax deductions for rich shoppers, however advisors are making the most of the one huge one that hasn’t disappeared—charitable giving to tax-exempt non-profit organizations. Based on a brand new survey by Constancy Charitable, practically half of advisors (47%) say that many or most of their shoppers elevated charitable giving as a result of lack of different deductions.
Advisors’ methods for charitable giving assorted, with 46% of advisors establishing a donor-advised fund. Forty-six p.c stated they donated appreciated securities to maximise deductions, and 44% employed a bunching technique to maximise charitable deductions.
“Tax reform raised consciousness on the a part of advisors of the necessity to assist shoppers be extra considerate concerning the timing, property and strategies used for giving as part of a holistic monetary plan,” stated Karla Valas, senior vp, fundraising and distribution at Constancy Charitable.
Greater than a 3rd of advisors (36%) suggested most or all of their shoppers to regulate their charitable giving primarily based on tax reform.
General, charitable giving is changing into a bigger a part of advisors’ service choices. On common, advisors stated they focus on philanthropy with 58% of shoppers, up from 46% in 2015. Greater than half of shoppers, on common, may gain advantage from a charitable giving automobile, advisors stated, up from 41% in 2015.
Constancy Charitable tapped impartial analysis agency W5 to conduct the survey, which encompassed 250 skilled advisors within the U.S., together with advisors, licensed public accountants and attorneys. However the knowledge right here targeted on responses from 175 advisors with property beneath administration of $25 million or extra.
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