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How Charitable Planning Can Help Ease Client Procrastination

Procrastination is an all-too-common habit that many people struggle with, particularly when it comes to important financial and estate planning decisions. As William James once said, “Nothing is so fatiguing as the eternal hanging on of an uncompleted task.”

You may have experienced clients putting off critical tax and estate planning discussions until the last minute, which can lead to hectic year-end rushes as tax-sensitive matters pile up, creating additional pressure for both you and your clients. One effective way to break through this procrastination is by tapping into your client’s philanthropic interests to ease your clients into important year-end planning tasks and make the process less daunting and more rewarding.

Charitable Planning as a Motivating Factor

Philanthropy offers an inspiring way to engage clients in discussions they may otherwise avoid. The positive, feel-good nature of charitable giving can serve as an effective starting point for conversations about year-end planning.

As the year draws to a close, consider using your clients’ charitable intentions as a catalyst to get the ball rolling on more complex tax and financial planning matters.

Getting Started with Charitable Planning

If you’re working with clients who may be inclined to delay planning, here are some ways that charitable planning can help kickstart the process.

Reach Out Early

Don’t wait until the end of the year to start these conversations. Suggest a meeting—or even a quick phone call—to discuss their 2024 charitable plans. This can lead to a broader discussion that touches on other tax planning and estate management items that need attention.

Review the Charitable Components of Their Plan

Start by reviewing the existing charitable components in the client’s estate and financial plans. This includes looking at provisions in wills and trusts, beneficiary designations, and past charitable giving strategies, like donor-advised funds or historical donations.

Use Philanthropy as an Opening for Other Planning Topics

It always helps to ease into the conversation by acknowledging your client’s past charitable efforts. This can naturally lead to discussing new opportunities for giving while addressing other essential year-end tasks. For example, if a client is over 70 ½ and wants to support a specific cause, you can introduce the idea of establishing a fund at the Athens Area Community Foundation. This could receive distributions from the client’s IRA, opening the door to broader discussions about Required Minimum Distributions (RMDs) and retirement planning.

Practical Solutions to Reduce Stress

For clients who feel overwhelmed by tax planning or the logistics of charitable giving, charitable planning can offer stress-reducing solutions. Here are our favorites:

Donor-Advised Funds

If your client is dreading the task of gathering receipts for their 2024 charitable donations, suggest setting up a donor-advised fund (DAF). A DAF at the community foundation serves as a hub for charitable giving, making it easier to track donations and plan for future contributions.

If your client already has a DAF, remind them of how it can be used more efficiently, and don’t hesitate to involve the community foundation’s team to provide additional support.

Gifting Appreciated Securities

Instead of automatically writing checks for charitable contributions, remind your clients that highly appreciated securities, such as stocks, often make better gifts. Donating these assets to a community foundation fund not only helps support their favorite causes but also allows the client to avoid capital gains taxes while receiving a deduction at the assets’ fair market value. This can lead to more significant overall support for the client’s preferred charities.

Beyond Philanthropy: Tying Charitable Planning to Broader Year-End Tasks

Philanthropy can act as a natural bridge to other critical year-end planning items. Once the conversation starts, it’s easy to pivot into discussions about:

• Annual exclusion gifts
• Estimated tax payments
• Updating wills and trusts
• Overall stock portfolio management

These topics can be especially timely as families prepare to gather during the holidays or embark on year-end travels, providing an opportunity to ensure all financial matters are in order.

The Role of the Athens Area Community Foundation

At the Athens Area Community Foundation, we understand that charitable planning can often serve as a key motivator for addressing larger financial and estate planning goals. Our team is here to help you and your clients navigate charitable giving strategies, whether it’s getting a head start in the new year, planning in September for year-end, or even assisting with last-minute stock gifts in December.

We’re here to make charitable giving—and the associated tax benefits—as smooth and rewarding as possible. Contact us today to explore how we can work together to support your client’s charitable and financial goals throughout the year.