The Tax Cuts and Jobs Act, signed into regulation in late 2017, eradicated a number of tax deductions for rich purchasers, however advisors are profiting from the one huge one that hasn’t disappeared—charitable giving to tax-exempt nonprofit organizations. In response to a brand new survey by Constancy Charitable, practically half of advisors (47%) say that many or most of their purchasers elevated charitable giving because of the lack of different deductions.
Advisors’ methods for charitable giving various, with 46% of advisors establishing a donor-advised fund. Forty-six % 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 purchasers be extra considerate concerning the timing, belongings and strategies used for giving as part of a holistic monetary plan,” stated Karla Valas, senior vice chairman, fundraising and distribution at Constancy Charitable.
Greater than a 3rd of advisors (36%) suggested most or all of their purchasers to regulate their charitable giving based mostly on tax reform.
General, charitable giving is turning into a bigger a part of advisors’ service choices. On common, advisors stated they talk about philanthropy with 58% of purchasers, up from 46% in 2015. Greater than half of purchasers, on common, may gain advantage from a charitable-giving car, advisors stated, up from 41% in 2015.
Constancy Charitable tapped unbiased 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 centered on responses from 175 advisors with belongings beneath administration of $25 million or extra.
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