Giving

It’s easy to write a check or donate online to a charity. But when it comes to more complex types of giving, such as creating donor advised funds or charitable remainder trusts, it’s time to call in the expertise of a financial planner or investment advisor.

Problem is, many financial planners don’t feel confident in their knowledge of charitable giving and tax-related issues, according to a new survey by Penton Research that was sponsored by Schwab Charitable. Though nearly eight out of 10 financial advisors talk with clients about charitable giving, 37 percent of survey respondents said they are concerned about their own level of knowledge.

Another 22 percent reported that clients don’t expect to receive charitable giving guidance from them, so they don’t try to broach the topic.

Though many types of advisors can help with charitable giving, it’s important to consult with specialists who really know their stuff when it comes to philanthropy. Whether your advisor is an estate planning attorney, an accountant, a financial planner, or a philanthropy consultant, there are various ways for experts to stay on top of the latest rules and regulations related to charitable giving and taxation.

At Lowry Hill, a private asset-management firm that offers investment and financial services for clients with at least $10 million in investable assets, financial advisors are expected to have a high level of knowledge regarding charitable planning.

To ensure that everyone at Lowry Hill stays current, a team of employees keeps abreast of the most up-to-date information and shares it with the rest of the staff at weekly meetings, according to Kristine Merta, a financial principal at the Minneapolis-based firm.

In addition, Lowry Hill subscribes to various electronic newsletters that focus on estate planning, charitable gifting, tax law updates and outlooks, proposed legislation, and case law rulings.

The firm also maintains a financial resource electronic library of various articles specifically dedicated to charitable giving and other financial areas, Merta says.

Jim Clay, an attorney at the Minneapolis law firm Gray Plant Mooty who focuses on trust and estate planning law, says he stays current on charitable giving rules through continuing legal education classes and other local seminars on the topic. Another good source for charitable giving dos and don’ts comes from IRS guidance.

“One of the advantages I have is that I can focus on estate planning and not do everything else,” says Clay. “As an attorney with an estate planning focus, you have to be creative and know what tools are out there to help clients achieve their philanthropic objectives. I help them figure out ways to give and give in a tax-beneficial manner.”