Give Them The Business

Give Them The Business

Article posted in on 15 August 2017| comments
audience: National Publication, Two Hawks Consulting, LLC | last updated: 17 August 2017


We explore some of the many opportunities to discuss philanthropic planning with business owners, one of the best populations for philanthropic advice.

By: Randy A. Fox, Editor-in-Chief

With the many ways lists can be sorted, ranked and stratified, business owners as a category represent one of the greatest opportunities for charitable planning – they’re also among the most challenging.

Surveys tell us that business owners rank among the highest level of givers – and there are strategies we can apply to help them go even higher. How we approach this segment of the population and help them not just give more, but give more effectively, can make a critical difference in the future of giving as well as the future of the business owner.

Many business owners don’t consider themselves as philanthropists – often because they’re under the assumption that philanthropy is something practiced by rich people, which they don’t view themselves as. But they do care – dig deeper and you likely find that they sponsor the local Little League team, belong to the Rotary or sit on their Church board. Or perhaps they have a spouse on the PTA, who volunteers at the Church bake sale, and runs towards all sorts of charitable work. Tapping into this spirit of community charity and helping business owners deploy their untapped philanthropic potential can be one of the most rewarding aspects of the planning process.

Family businesses, by default, have a legacy component baked in to them. With help, that element can be leveraged into something much more. One of the greatest opportunities to capitalize on the business owner’s giving capacity is at or before the exit from or sale of the business. Many business owners are strapped for cash during their working years but stand ready to reap a large sum on the way out the door. Savvy advisors can add huge value by interposing charitable strategies that will help the business owner reduce the taxes due on the sale or transfer of the business. This is one of the biggest opportunities available for advisors, charities and business owners – all at the same time.

Whether its planning a charitable stock redemption, charitable ESOP, monetized installment sale or even mitigating income taxes post sale by utilizing pooled income funds, charitable lead trusts can position the smart advisor differently than anyone else in the sale transaction.

Experience tells us that business owners hate paying income taxes – yet at the time of sale they generally don’t interject wise tax planning and years of tax mitigation get paid back instantly and unnecessarily. This makes no sense but is the common practice. There is a better way.

Business owners constitute a large portion of the wealth holders in this country – they create jobs, contribute to the gross domestic product and add stability to our economy. They also have more giving potential than a wage-earning executive. As advisors, being able to help business owners before, during and after a transition is a critical time for advisors to introduce and effect charitable gifts. Miss this one and you’re missing one of the biggest opportunities available.

Give me a call at (704) 698-4055 or email me at for more information on how charitable planning can benefit your clients.

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