Tax season is here, which means that while clients are taking stock of their financial year, advisors are answering questions, finalizing documents, and keeping things moving. But there’s an overlooked opportunity in this season. Advisors help clients see the whole picture, and the activity around taxes sets the stage for a strategic conversation about how charitable giving fits into their financial plan. Not only is this a meaningful offer for clients, but it facilitates stronger retention and deeper engagement.
Beyond Returns: Building Retention
The advisor who helps a client align their values with their overall financial strategy positions themselves differently than someone who primarily manages their portfolio. That’s no small distinction.
In fact, recent research shows that among investors who work with their advisor on charitable giving, 92% are more likely to retain that advisor. Among advisors who proactively engage clients on giving, 54% report improved client retention.
For some clients, charitable giving may exist outside of their financial goals. Intentional giving conversations connect what clients value to when and how they give, in a way that’s both tax-smart and personally meaningful.
With clients already thinking about income and deductions during tax season, an advisor who initiates a conversation about charitable giving signals that they understand their clients’ values and care about their financial wellbeing holistically.
3 Tax-Smart DAF Strategies for Your Clients
A donor-advised fund (DAF) is a particularly strategic vehicle for taking action on a client’s charitable giving goals. Built for long-term, flexible giving, a DAF supports intentional generosity with clear tax benefits.
Here are three tax-smart DAF strategies to consider:
1. Charitable bunching
For clients near or above the standard deduction threshold, charitable bunching consolidates multiple years of giving into a single tax year, amplifying both the deduction and the impact. It’s a multi-year strategy that demonstrates that an advisor is thinking ahead.
2. Appreciated assets
Contributing long-term appreciated securities directly to a DAF allows clients to mitigate capital gains while maximizing their charitable deduction. This draws directly on the portfolio knowledge that advisors are uniquely positioned to apply, further building confidence with the clients they manage.
3. Income events
Variable income, liquidity events, or a significant bonus are all strategic opportunities to leverage a DAF. Clients who contribute in a high-income year capture an immediate deduction while preserving flexibility in their giving timeline. This is the kind of foresight that clients don’t forget.
The Compounding Advantage
Intentional giving conversations create an opportunity to build relationships that last. A DAF makes it easy to act on, helping establish a giving strategy that not only stewards clients’ assets but values their intentions and purposes.
Each year these conversations happen, the relationship deepens. Clients see their advisor as someone who not only understands their finances, but what they value most. That kind of relationship is not something a competitor can easily replicate. That is differentiation that compounds.
Learn more about our modern, scalable DAF solutions for every donor and community.
Questions about our donor-advised fund solutions? Schedule a call with us at 800-839-0054 or click here. Together let’s #begiving.
