Maximizing Your Philanthropic Impact
Create the structure needed to transform and execute your vision and legacy
The ability of elite financial advisors to deliver timely, high-quality, and actionable guidance with regard to all aspects of a family’s wealth management agenda is what often distinguishes them from the pack of advisors who operate with a more narrow focus.
We recognize the importance our clients place on investing their philanthropic dollars. The time spent deciding these matters, within their overall financial strategy, is important to them. We often advise clients on the portion of their wealth that can be allocated to philanthropic giving, yet we have been fairly hands off when it comes to directing where our clients give their time and money. Traditionally, clients identify with several types of recipients: an alma mater, friends’ or colleagues’ nonprofits, organizations addressing specific and meaningful programmatic areas, or their own charitable organizations, such as family foundations used to grant funds.
With more than 1.8 million active nonprofits in the U.S., finding the right grantee and doing the due diligence of the charitable and financial standing of each takes time, knowledge, and expertise. The process typically includes examining an organization both internally with their staff and board as well as externally with the IRS. Additionally, setting up a traditional foundation requires an extensive amount of administration to handle the legal, tax, and financial management, let alone identifying and selecting recipients of quality. This landscape had not changed for much of the last 30 years—until recently.
The rapid growth of donor-advised funds (DAFs) over the past few years, and the rise of “impact investing” in social enterprises and funds, has given donors a whole new set of options when it comes to thinking strategically about their charitable contributions. We see an important new role in helping our clients navigate these options, identifying the most beneficial and effective vehicles for their family and financial situation.
Oppenheimer & Co. Inc. does not provide legal or tax advice, but will work with your other advisors to assure your needs are addressed. The opinions of the author expressed herein are subject to change without notice and do not necessarily reflect those of the Firm. Additional information is available upon request. Investors should review potential investments with their financial advisor for the appropriateness of that investment with their investment objectives, risk tolerances and financial circumstances.
© Oppenheimer & Co. Inc. Transacts Business on all Principal Exchanges and Member SIPC.