Do you need a charitable advisor?

It's tax time and business owners and individuals across the Baltimore region are meeting with their financial planners, accountants, tax preparers, and attorneys. Have you considered adding a charitable advisor to your team?

Lisa B. is incredibly busy preparing for the acquisition of her regional company by a national corporation. As she negotiates the deal, she also meets with her accountant, tax preparer, and personal lawyer to discuss the implications of the funds she is about to receive. They advise her that to reduce her tax liability, she should donate a portion of the sale proceeds.

While Lisa is a member of her alma mater’s alumni committee and sits on the board of a local nonprofit, she has never made a gift of this level to charity. Ideally, she would like to support multiple nonprofits and make small to mid-size gifts over time, but she is too busy to make all the donations by the end of calendar year. Her advisors suggest opening a private foundation, but they also inform her that there are high yearly costs associated with doing so. Her accountant mentions a donor-advised fund as an alternate solution.

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Source: Baltimore Business Journal