Right Guidance = Right Choice


Right Guidance = Right Choice

“The Right Philanthropic Vehicle” ( JofA, July01, page 22) laid out clearly the major alternative strategies and rationale that should guide a donor’s choice.

The CPA, along with the client’s trusts-and-estates attorney and a philanthropy adviser, should be part of the team that guides a high-wealth individual in this decision-making process.

Deciding to be philanthropic and choosing the appropriate instrument are only the first two steps in the planning process. The third is the development of a thoughtful giving strategy. The same thinking that goes into the business plan must go into the actual investment in the nonprofit sector.

The philanthropy adviser should counsel the client on the following:

What social issues he or she hopes to affect?

Which nonprofit organizations working on those issues are the most effective?

Should the client make many small grants or a few large ones?

How to evaluate the effectiveness of the nonprofit organization or program that the donor funds.

How to support non-U.S. charities and still get a tax benefit.

How to choose between anonymity and visibility.

It takes a complete team to provide full service to a client who has the desire to be philanthropic.

Phyllis R. McGrath, President
Philanthropy Management, Inc.
Basking Ridge, New Jersey


Letters to the Editor

The JofA encourages readers to write letters on important professional issues in addition to comments on published articles. Because space is limited, letters submitted for publication should be no longer than 500 words. Please include telephone and fax numbers.


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.