Right Guidance = Right Choice

BY PHYLLIS R. MCGRATH

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

 

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