Creating a Legacy: Wealth Management Philanthropy & Charitable Giving

When considering the future of your investments, wealth management philanthropy and charitable giving funds may not be the first things that come to mind. However, it is increasing in popularity and quickly becoming a staple factor in investment management. Allocating charitable funds for use in charitable giving strategies can prove to be beneficial when it comes to tax time and when it comes to your personal legacy or an organization’s impact on society. 

Regardless of whether you are an individual who needs investment management solutions or you’re on a non-profit board looking for an outsourced chief investment officer to help manage assets, it is important to look at wealth management philanthropy as a necessary component of your overall financial and wealth strategy. 

In recent years, wealth management philanthropy has become so popularized that it dominates headlines and is now an integral part of the overall wealth management strategy for current and upcoming generations. Understanding it is important to improving your charitable giving strategies.

wealth management philanthropy

Understanding Wealth Management Philanthropy

Before we dive into charitable giving strategies, let’s get a basic understanding of wealth management philanthropy. Essentially, wealth management philanthropy occurs when you make a conscious choice to offer financial gifts in a way that helps the recipient and strategically aligns with your wealth management goals. 

Wealth management philanthropy offers you smart ways to allocate charitable giving funds that can then be leveraged through charitable giving strategies donated in a meaningful way to causes, people, or organizations that you care about. Charitable giving strategies involve both donors and recipients, so wealth management philanthropy applies to both ends of the giving spectrum.

Why Philanthropy in Wealth Management is Gaining Importance

Recent cultural trends are causing philanthropy in wealth management to gain importance, far more so than previous generations. The younger generations have an acute awareness of how those with wealth handle their money, and there are more funding demands than ever before for causes that genuinely need assistance. There is a growing desire among those who have the wealth to engage in philanthropic efforts and for their wealth management advisors to assist them with creating charitable giving strategies.

In fact, a report by the Scorpio Partnership cited that philanthropy in wealth management is expected to grow by 60% over the next five years, and it is anticipated to become a core pillar among investment services.  Ultimately, changing demographics are resulting in increased altruism among those with substantial wealth, and this is creating a demand for wealth management philanthropy and charitable giving strategies among investors.

How Wealth Management Facilitates Philanthropic Goals

Wealth management can help you facilitate philanthropic goals by creating a charitable giving strategy that aligns with your values, financial capabilities, and charitable giving funds available, and that makes sense with your overall investment strategy. 

And, there is no better time to develop a charitable giving strategy than when capital markets are excelling. Using a wealth management firm to facilitate your philanthropic goals also means that you will not be giving beyond your means, putting all your eggs in one basket, or risking the integrity of your investment portfolio.

wealth management philanthropy

Creating A Charitable Giving Strategy

Furthermore, your wealth management company will create a charitable giving strategy that helps you maximize your impact so that your charitable giving funds go further and have a more meaningful impact. For example, if you want to donate funds for cancer research, your wealth management company will help you find a recipient that will aggrandize your donation; this way, your funds go further instead of being used for bloated administration or other tertiary causes

Your wealth management company may suggest a charitable giving strategy that donates your funds directly to a hospital for much-needed medical equipment versus a general donation to a non-profit that tackles a variety of purposes.

Why Philanthropy Wealth Management Can Create a Legacy of Charitable Giving

With wealth management philanthropy, your wealth management advisor will establish charitable giving strategies that can help you accomplish your goals while leaving a legacy of altruism instead of greed. When you pass your wealth on to the next generation, you will be revered as someone who cared about others, who purposefully set aside charitable giving funds, and who did not let their wealth compromise their integrity. This will also set the stage for future generations to continue in wealth management philanthropy.

What are Charitable Giving Funds?

So, what are charitable giving funds? When it comes to wealth management philanthropy, giving funds are the monies set aside for donations to causes or nonprofits, or more basically,  money that you give to charity. Giving funds are typically earmarked and are often set aside in a separate account.

Top Charitable Giving Strategies in Wealth Management

When it comes to wealth management philanthropy, there are definitely some charitable giving strategies that are more popular than others. Here are some of the top charitable giving strategies that we frequently see here at ACG: offset high-income years with charitable giving, engage in wealth management philanthropy by maximizing tax-deductible donations, and using a foundation or DAF (donor-advised funding) to establish philanthropic efforts.

We’ll take a deeper look at this in the future, so be sure to check back to our blog for updates or contact our team to learn more.

Why Outsource Your Philanthropy Wealth Management

For starters, you should outsource your philanthropy wealth management because your wealth management advisors already have a handle on your total liquid assets. An outsourced chief investment officer, also known by its acronym OCIO, will provide investment discretion and accountability

This means you won’t have to worry about compromised efforts or stretching beyond your team’s capabilities. The reality is that board members of nonprofits are at maximum capacity with regard to financial responsibilities and endowment. 

Outsourcing charitable giving strategies and choosing an OCIO from a trusted Atlanta wealth management firm can help your organization streamline its processes. An investment committee is also something that you may expect from your wealth management firm to assist in managing your charitable giving strategies. 

Ultimately, when considering outsourcing your philanthropy wealth management, you’ll want to look at a firm that has a robust team of investors, consultants, and financial analysts. We’ll dive more deeply into this later, but it is a good idea to leave charitable giving strategies to the professionals in the same way that you trust your tax accountant to handle your taxes.

charitable giving strategies

What to Look for in an Atlanta Non Profit Investment Advisory Service

If you have a nonprofit, your wealth management needs are unique, especially when considering partnering with an investor and receiving charitable giving funds. There are more stipulations and responsibilities for managing finances of a nonprofit, and because of that, finding a nonprofit advisory service may be challenging. It is essential that you find a wealth management advisor that has both nonprofit expertise and exceptional financial acumen. 

If you’re looking for an Atlanta nonprofit investment advisory service, look no further than Atlanta Consulting Group. Our team of experts, analysts, and investors will make sure that you are making the most of your money and that it goes as far as possible for a maximum impact. 

Build a Charitable Giving Strategy with the Atlanta Consulting Group

Hopefully, you’ve learned that it is essential to have wealth management philanthropy and engage a wealth management service like ACG to help you set aside charitable giving funds. 

We can develop a charitable giving strategy that helps you achieve your goals and create a long-lasting legacy! Contact us today for help establishing a charitable giving strategy.

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