As an accountant, you know charitable giving can be an important part of an individual’s or family’s financial and estate plans. But it is also important to remember that charitable giving often plays a role in their professional lives as well. Many of your clients are company executives who want their company and employees to lean into charitable giving. That’s why it’s wise for you to be aware of the best practices in corporate giving.
A Donor Advised Fund (DAF) is an easy tool for companies of any size to use for their charitable giving. The fund helps corporate leaders organize the company’s giving in a convenient, 501(c)(3)-qualified structure, avoiding the time and expense required to establish and maintain a separate charitable entity. The company can contribute to the corporate DAF each year, then organize donations to a single or wide range of nonprofits through a single source of funds.
More and more companies are beginning to partner with DAF sponsors, like a community foundation, to offer DAFs to their employees as an added benefit of employment. The employees can fund their DAFs using a wide range of assets, including stock received as a company stock gift. Companies can also donate to an employee’s DAF as part of a corporate giving match program.
Another popular corporate giving tool is a company-supported giving circle. Giving circles foster a sense of community and camaraderie among colleagues by pooling resources for charitable causes. They empower employees to collectively make a meaningful impact on issues they care about, promoting a sense of ownership and engagement within the organization. Additionally, participating in giving circles enhances corporate social responsibility efforts, demonstrating a commitment to philanthropy and social causes.
Sunni Kamp is the director of corporate giving at the Omaha Community Foundation. To learn how you can partner with the Omaha Community Foundation to support your clients and their giving goals, contact her at (402) 933-4188 or sunni@omahafoundations.org.
