Helping Charitable Clients Make a Lasting Impact
2025 is not a leap year. There’s no February 29th, no extra day to check off another task or set new goals. But, just because we don’t have an extra day doesn’t mean we can’t make an extra impact. For financial advisors working with charitable clients, now is the perfect time to take the leap and introduce them to Donor-Advised Funds (DAFs)—one of the most effective tools for strategic philanthropy.
Why Now? There’s No Time Like the Present
Many of your charitably inclined clients have good intentions, but may not know how to maximize their giving. They might write checks to their favorite nonprofits, but they’re likely missing out on key financial benefits that a DAF can offer. While this year doesn’t have an extra day, it does have the same tax deadlines, the same financial opportunities, and the same need for generosity in the world.
Here’s why DAFs should be part of your clients’ charitable giving strategy this year:
1. Immediate Tax Benefits, Long-Term Giving
DAFs allow clients to make a charitable contribution now and receive an immediate tax deduction, even if they choose to distribute the funds to charities over time. This is especially beneficial for clients looking to reduce their taxable income in a high-earning year.
2. Simplicity and Flexibility
Managing multiple donations can be time-consuming. A DAF consolidates charitable giving into one account, simplifying record-keeping and allowing clients to support multiple charities without the administrative burden.
3. Strategic Philanthropy
With a DAF, clients can grow their charitable dollars through investment options, giving them more impact over time. They can also plan their giving thoughtfully rather than feeling rushed at year-end.
4. Appreciated Assets = Greater Giving Power
If clients have appreciated stock, private business interests, cryptocurrency or real estate, they can donate these assets to a DAF tax-free, avoiding capital gains taxes and increasing the amount available for charitable giving.
Your Role as a Financial Advisor
Your clients trust you to guide them toward financial success, but that success isn’t just about wealth accumulation—it’s about purposeful wealth management. By proactively introducing the idea of a Donor-Advised Fund, you help clients align their financial planning with their values.
Many clients may be hesitant to take the leap into structured philanthropy, just as some might hesitate to make big financial decisions. But with your expertise, you can show them how a DAF makes giving easier, more tax-efficient, and more impactful.
Don’t Wait for a Leap Year to Make the Leap
2025 doesn’t have an extra day, but it does have the opportunity to make a difference. If your clients are passionate about charitable giving, now is the time to introduce them to the power of Donor-Advised Funds. It’s not a leap year—but it’s time to take the leap.
