PORTLAND BUSINESS JOURNAL
From tapping IRA accounts to donating to under-funded schools, local wealth advisor Brett Davis takes note of some of the current trends in holiday giving.
At TRUE Private Wealth Advisors, an independent financial advisory firm based in Portland and Salem, we work with a number of high net worth clients in the community — both corporate clients and entrepreneurs. We work with many privately-held businesses; because many business owners are asked to give, we assist with an overall gifting plan.
This is the time of year for year-end planning and the discussions often focus on charitable giving. The primary areas of giving we are seeing with our clients this year revolve around three themes:
- Tax-free donations from IRAs: Last year, Congress made permanent the law that allows folks to donate up to $100,000 from their IRA tax free to a qualified charity. We are seeing multiple clients who are over 70 use this gifting opportunity to fulfill their "required minimum distributions."
- Direct support to local schools: Many school programs in Oregon have not had their funding fully restored from cuts made during the financial crisis. We continue to see clients directly support local schools and programs with donations targeted for specific purposes. An example of this is our local high school’s wrestling team has the opportunity to compete in a National tournament in Reno over Christmas but they do not have the funding for travel and hotel lodging in their budget. One of our clients made a donation of a charter bus service and bought a block of hotel rooms to allow the team to make this event a reality.
- Focus on children: There is always a focus this time of year for children in need. Our clients are extremely active in community outreach programs that provide for families and kids in need during the holidays. These include local food banks, shelters, day care programs and church programs. Family Building Blocks is a local charity that our firm has supported tremendously over the years.
We recommend that our clients have a short- and longer-term goal of giving. We encourage clients to continue to donate to their local community nonprofits. But it’s also a good idea to take time to consider the possibility of endowing a scholarship or making a significant donation to a national nonprofit to make a long-term impact.
For families with multi-generational wealth, we encourage parents to bring their children into the process. It’s important to teach their teens and young adults about the role of philanthropy, the values that parents want to pass on and allow their children to see the positive impact giving can have.
Several families also volunteer during the holidays at the same charities to which they give. As one client said to us, “When during our family meeting we decided to gift to the Union Gospel Mission, our kids were indifferent. After we spent part of Thanksgiving serving meals to the folks Union Gospel serves, our children had an entirely different perspective about helping those less fortunate then us.”
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