This article was originally published on June 15th in the Collier Community Foundation Professional Advisors Council Summer Newsletter
Click here to read the entire newsletter
Empowered Philanthropy: A Testimonial
"As an estate planning attorney and Chartered Advisor in Philanthropy (CAP), I regularly meet with clients eager to contribute to charitable causes but unsure where to direct their generosity. Donor advised funds (DAFs) offer a versatile and impactful solution, especially through organizations like the Collier Community Foundation (CCF). We are proud to not only recommend CCF to our clients but also to actively support their mission as a corporate sponsor for the past three years." - Edward E. Wollman, JD, LLM, CAP
Flexibility of Donor Advised Funds
One powerful reason I often recommend donor advised funds is that they offer a unique advantage: they allow donors to earmark a portion of their estate for charity without finalizing the recipients at the time of their estate planning. For instance, clients can allocate 10% of their estate to charity and direct these funds to CCF. This decision doesn’t slow down the estate planning process because it doesn’t require choosing the final beneficiaries immediately. Donors can work with CCF directly to specify and amend their beneficiaries at their convenience, eliminating the need for codicils or trust amendments. This flexibility allows for changes in charitable intentions without the need to revisit legal documents. Clients can also appoint a successor to their donor advised fund, such as an attorney or family member, empowering others to continue their philanthropic legacy.
Field of Interest Approach
Another benefit of the CCF team is their ability to guide donors through the giving process. For example, suppose a client expressed interest in senior citizen support or environmental conservation. In that case, we recommend a field of interest approach, entrusting CCF’s advisors to allocate funds based on specified interests. This approach taps into the foundation’s expert knowledge of local needs, ensuring impactful donations that align with the donor’s values.
Local Advantage
While there are benefits to national charitable funds, I find CCF has distinct advantages. They have cultivated a caring team focused on local philanthropy, encouraging donors to invest in their community and raising the overall “charitable bar” in SWFL. While donors can still support national or international causes, CCF encourages allocating at least a percentage of donations to local projects.
Integrating DAFs with Other Financial Tools
In practice, we often pair donor advised funds with other financial planning tools, such as charitable remainder trusts (CRTs). A CRT secures immediate financial benefits for our clients and ensures that the remainder of their estate is used effectively for charitable purposes through CCF. This dual benefit is just one example of the versatility of DAFs that reinforces our clients’ philanthropic legacies.
Making a Successful Referral to CCF
We frequently refer clients to CCF. This collaboration has also proven highly beneficial for our firm. It underscores our commitment to responsible, community-focused planning, and our clients appreciate having the ability to integrate meaningful philanthropic strategies into their estate plans. With CCF as a trusted partner, we are grateful to contribute to our community’s well-being, now and for generations to come.