March 2023
Professional Advisor Newsletter
Hello from Whidbey Community Foundation!
We have heard from advisors about some of the questions they're hearing from clients. We're happy to address two of the topics that appear to be top of mind. Specifically:

  1. We've seen an uptick in inquiries about the types of funds your clients can use to receive Qualified Charitable Distributions.
  2. We are hearing from more and more of you that your business owner clients are interested in exploring ways to wrap charitable gifts into an eventual business exit or liquidity event

Thank you for all you do for our community! We appreciate the opportunity to work with you as you serve your clients. Together, we are making our community a better place for everyone.
Hidden no more: Designated funds and field-of-interest funds
Most attorneys, accountants, and financial advisors are well-aware of donor-advised funds and the reasons behind their popularity. Especially when a donor-advised fund is established at Whidbey Community Foundation, this vehicle is an excellent way for your clients to organize their charitable giving and get even more connected to the causes they care about. 

Enter the Qualified Charitable Distribution

Your clients can give nearly any type of asset to a donor-advised fund at Whidbey Community Foundation. A notable exception, though, is the Qualified Charitable Distribution (QCD). A QCD allows a taxpayer 70 ½ or older to make a direct transfer of up to $100,000 annually from an IRA to a qualifying charity. A donor-advised fund is not considered to be a qualifying charity.  

Although donor-advised funds cannot accept QCDs, Whidbey Community Foundation offers other types of funds that can accept QCDs. For example, designated funds and field-of-interest funds held at the community foundation are ideal recipients of QCD transfers. These fund types are often overlooked, despite the high value they can deliver to your client and to the community. 
Giving a business to charity: Stack the odds in your client’s favor
Despite recent reports of a 55% decline in charitable giving by the top 50 U.S. donors in 2022, high profile giving by donors associated with well-known businesses has maintained its place in the limelight, even amid recent market volatility and tenacious concerns about inflation and interest rates. Recent examples abound, including last year’s gift of Patagonia by founder Yvon Chouinard; the well-reported generosity of philanthropists Melinda French Gates and MacKenzie Scott; and the portion of the proceeds, potentially worth $5 billion, from the eventual sale of Subway restaurants that are set to flow to a charitable foundation.  
As an advisor to business owners—and collaborating with Whidbey Community Foundation—you can help your clients leverage potential future liquidity events to support the community causes they care most about.
The team at Whidbey Community Foundation is a resource and sounding board as you serve your philanthropic clients. We understand the charitable side of the equation and are happy to serve as a secondary source as you manage the primary relationship with your clients. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.  
Thank you for letting Whidbey Community Foundation assist in your charitable efforts!