Building Your Philanthropic Legacy

At 1919 Investment Counsel (“1919”), our clients who are interested in making a difference often ask us for advice on how to leave a philanthropic legacy. However, the tax rules and various types of vehicles for charitable giving are complex and not always easy to navigate. Below is some advice you might consider as you think about building a philanthropic legacy.

How Will Your Philanthropic Fund Be Managed?

We always want to understand your goals and help you formulate your philanthropic mission. After doing so, we might suggest one or more of the following types of charitable planning vehicles:

• Donor-Advised Fund (DAF)
• Private Foundation
• Charitable Remainder Trust
• Charitable Lead Trust

Other strategies for giving can include:

• Outright gift or bequest to a charitable organization
• Gift of appreciated property
• Gift from a retirement account

Each vehicle has its advantages and limitations. Although 1919 does not provide tax advice, we are able to guide clients through the planning process and help them think through the possibilities. You may also need to work with an attorney and an accountant when setting up and managing some of these charitable entities.

Investing Your Philanthropic Assets

Another important consideration is how the charitable assets will be managed over the long term. You may wish to invest in a way that is consistent with your mission and values. At 1919, we have a long track record of managing funds dedicated to client-driven principles. We have considerable experience working with large foundations, as well as families who wish to have their assets managed consistently with their system of values. We are able to construct a customized investment policy statement and asset allocation that meets your investment objectives and responds to your societal values and ethical beliefs. We can add even greater value by providing personalized reporting on all of your investments, including those with other managers, so you can understand how all of your investments align with your values and beliefs. Responsible Investing is a unique capability of 1919 and our ability to understand both sides of the philanthropic coin is central to the quality of counsel we provide.

Management & Execution

After helping you formulate the ideas that will drive your philanthropic mission and setting up the appropriate investment strategy, 1919 can also work with you and your advisors on management and execution of your charitable giving fund.

Here are a few of the ways in which we can help our philanthropic clients:

• Understanding your wishes and needs
• Creating a mission statement
• Choosing the right type of charitable entity
• Advice on grant making
• Advice on investing in line with your values
• Creating metrics to measure success
• Administrative support
• Facilitating governance, communication, and oversight
• Coordinating with attorneys, accountants, and third party investment managers

Estate Planning

All of the strategies and considerations we have mentioned can also impact your estate plan. Federal law provides tax incentives to donors who make significant gifts for charitable purposes, such as income, gift, and estate tax deductions, as well as tax-exempt status for certain types of charitable entities. However, the rules are complex and not easy to navigate. Nonetheless, the results can be so powerful as to warrant taking on the added complexity. Through careful planning, philanthropy can turn into a lasting legacy for you and your family.

If you are interested in philanthropy in the near or long term, we encourage you to consult your Portfolio Manager or Client Advisor at 1919 to discuss these ideas and take the next step toward building your philanthropic legacy.

Aligning to Your Values

1919 has strong capabilities in responsible investing, managing private foundations, and estate planning. 1919 has been advising high-net-worth families for over 100 years, and we always appreciate the opportunity to work with our clients on their charitable goals. When we help you build a philanthropic legacy, it will be with your needs and wishes in mind.

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