Making Philanthropy a Part of Your Advisory Practice

A Case Study: Mike and Cathy

Consider Mike and Cathy, a couple in their early 50s with no children, who share a passion for animal welfare. Mike works for a high-tech company, with much of his compensation tied up in deferred compensation, restricted stock units (RSUs), and performance stock units (PSUs). In 2024, a large tranche of awards was scheduled to vest, causing a significant spike in taxable income.

The couple faced three challenges: unpredictable cash flow, a looming tax bill from vested RSUs, and the desire to support charities aligned with their values. With careful planning, we implemented a charitable remainder trust (CRT) and a grantor charitable lead trust (CLT). The CRT allowed them to sell appreciated RSUs held over a year inside the trust without immediate capital gains, creating a future income stream and diversification benefits. The CLT generated a large upfront deduction - offsetting the income spike - while ultimately returning principal to the couple at the end of the term.

The result? Tax liabilities were managed, retirement income streams were diversified, and their favorite animal charities received significant support. This example illustrates how charitable strategies can create a “win-win” for clients: solving financial challenges while making meaningful charitable gifts.

Why Advisors Should Raise Philanthropy

Many advisors hesitate to initiate conversations about charitable giving, citing concerns such as not knowing enough, potentially losing assets under management, or assuming clients aren’t interested. Yet the evidence suggests otherwise:

• Clients care deeply. Surveys consistently show that affluent clients are motivated by personal values, belief in an issue area, or gratitude to organizations that have impacted them¹. Taxes matter, but they are rarely the main driver.


• Philanthropy is growing. In 2024, charitable giving reached $592.5 billion², nearly 2% of GDP, buoyed by strong market performance.


• Advisors are missing opportunities. Fewer than half of high-net-worth clients report being satisfied with the charitable conversations they have with their advisors³.

Incorporating philanthropy into your practice sets you apart, strengthens relationships, and often helps close new prospective clients. It’s not just good for clients - it’s good business!

Overcoming Common Barriers

Advisors need not be technical experts in every charitable vehicle. Instead, success comes from:

• Recognizing fact patterns. Clients with concentrated stock, a spike in income, or a looming business sale are prime candidates for charitable planning.


• Leveraging professional networks. Collaborate with estate attorneys, CPAs, insurance professionals, and nonprofit development officers like those at the American Heart Association who specialize in these strategies.


• Keeping perspective. Charitable giving should be integrated into broader wealth, tax, and estate planning, but it does not require surrendering client relationships or assets.

Key Principles and Approaches

Philanthropic planning can be framed around four core questions:

1. When can someone give? Either during lifetime (inter vivos) or at death (testamentary). The timing shapes the optimal strategy.


2. What can they give? Nearly any asset of value - from cash and securities to real estate, retirement accounts, life insurance, or even business interests.


3. How can they give? Options range from outright gifts to more complex vehicles such as CRTs, CLTs, charitable gift annuities, bargain sales, or retained life estates.


4. Why do they give? Values, causes, and legacy goals are the ultimate drivers; taxes and technical considerations are secondary.

Asking thought-provoking discovery questions - such as what legacy clients wish to leave, which schools or faith communities shaped them, and what causes inspire them - helps uncover philanthropic intent.

Tools in the Toolbox

Several vehicles can be particularly powerful in client situations:

• Charitable Remainder Trust (CRT): The “Swiss Army knife” of charitable planning, ideal for clients with concentrated stock or real estate. CRTs defer capital gains, provide an income stream, generate charitable deductions, and diversify risk.


• Charitable Lead Trust (CLT): Often underutilized, CLTs can provide income or estate tax leverage. Grantor CLTs deliver upfront income tax deductions, while non-grantor CLTs can reduce gift and estate taxes.


• Charitable Gift Annuity (CGA): A contract with a single charity that provides lifetime income in exchange for an irrevocable gift.


• Qualified Charitable Distribution (QCD): Still one of the simplest and most effective strategies for clients over 70½. QCDs reduce adjusted gross income, satisfy required minimum distributions, and provide tax-efficient giving.


• Donor Advised Fund (DAF) and Private Foundation: Both allow clients to centralize giving, though they differ in setup, cost, and deduction limits.

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, has introduced new rules such as a below-the-line deduction for non-itemizers starting in 2026 and a 0.5% of AGI floor for itemized deductions. Advisors need to be aware of how these changes may impact planning strategies.

The “Top Four” Giving Opportunities to Watch For

1. Concentrated Stock: A CRT or DAF can help diversify concentrated holdings and manage tax exposure while benefiting charity.


2. “Tired Landlord Syndrome”: Real estate owners who wish to divest but are reluctant to sell due to capital gains and depreciation recapture may benefit from transferring property to a CRT.


3. Income Spike: A grantor CLT can offset one-time income events, such as equity awards or golden parachutes.


4. Business Exit/Sale: One of the most technical but also most impactful areas - carefully timed gifts of closely held stock, or the use of CRTs and CLTs, can create substantial tax and charitable benefits in the context of a business succession or exit.

Practical Takeaways

• Start the conversation. Don’t wait for clients to bring up charitable giving; incorporate it naturally into discovery.


• Know enough to recognize opportunities. You don’t need to know every nuance of charitable planning rules - just identify when philanthropy could help and then connect clients to the right specialists.


• Emphasize values, not just taxes. Taxes are a tool, not the motivation. Keeping conversations value-driven builds stronger, more enduring client relationships.


• Stay current. The legislative environment continues to evolve. Resources such as Giving USA, professional designations (CAP®, CSPG), and organizations like NAEPC (National Association of Estate Planners and Councils) or the American College can help deepen your expertise.

Conclusion

Integrating philanthropy into your advisory practice is more than a technical exercise. It is an opportunity to align financial strategies with client values, create lasting legacies, and strengthen your role as a trusted advisor. Charitable planning provides flexible tools that can solve financial challenges while advancing the causes your clients care about most.

Sources

1. “Giving With Purpose: How Affluent Houses Contributed in 2022.” Merrill.
2. “Giving USA 2025: US Charitable Giving Grew to $592.50 Billion in 2024, Lifted by Stock Market Gains.” Indiana University Lily School of Philanthropy, June 24, 2025.
3. Kerri Anne Renzulli, “Help Clients Give Away More of Their Money. Yes, Really.” Financial-Planning.com, November 5, 2018.

About the Author

Juan Ros, CFP®, AEP®, CEPA®, CVGA®
Partner, Forum Financial Management

Before joining Forum Financial Management in November 2018, Juan was a partner and vice president at Lamia Financial Group, Inc., which joined with Forum in January 2019. Prior to joining Lamia, Juan held various gift planning and major gift positions at the Ronald Reagan Presidential Foundation, Occidental College and the ALS Association, helping to raise millions of dollars in current and deferred gifts. Juan works closely with legacy-minded families and business owners to enhance, protect and help transfer their wealth, particularly when charitable planning is involved. Since 2015, Juan has served on the faculty of the American Institute for Philanthropic Studies, which awards the CSPG designation. He is a frequent contributor and member of the editorial board for the monthly publication Planned Giving Today.

Continue the Conversation – Join the Webinar!

Join Juan Ros and the Professional Advisor Network for a webinar on September 24 at 2pm-3pm CT. “Making Philanthropy a Part of Your Financial Planning Practice” will expand on these ideas through real case studies and show how you can apply key learnings to your practice. It’s a great opportunity to gain practical strategies and resources you can put into action right away. It’s free for Professional Advisor Network members to attend, and participants are eligible for 1.0 free CE credit upon completion. Register at heart.org/advantage.

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Disclosures

Juan Ros is a Partner and Financial Advisor with Forum Financial Management, LP (“Forum”). This material is provided for informational and educational purposes only and should not be construed as investment advice, a recommendation, or an offer to buy or sell any securities or to adopt any investment strategy. Forum is registered as an investment adviser with the Securities and Exchange Commission, with its home office located at 1900 South Highland Avenue, Suite 100, Lombard, IL 60148.

Before making any investment decision, please contact our office at (630) 873-8520 to request a copy of Forum’s Investment Advisory Agreement and Form ADV Part 2A, which includes a description of services and fees. Additional information about Forum is also available at www.forumfinancial.com.

Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.

The opinions expressed in this article are solely those of the author and do not reflect the views or endorsements of the American Heart Association (AHA). The AHA does not endorse or assume responsibility for any information or opinions presented in this article.