From Success to Significance: Opportunities After a Major Financial Milestone

Life’s big milestones cover a lot of ground! Some are deeply personal, such as welcoming a grandchild, retiring after a long career or celebrating a significant birthday. Other milestones are financial: selling a business, receiving an inheritance, exercising stock options, selling a valuable piece of real estate or realizing a financial gain following an initial public offering involving stock you’ve owned for years.

Whether financial or personal, major milestone moments often bring a sense of accomplishment. They can also bring something else: an opportunity to pause and reflect, and be smart about the next big move. For many people, that’s when the questions start changing. At some point along the way, instead of asking themselves, “What’s my next big thing?” they shift to “What matters most?” and “What kind of impact do I want to leave behind?” That’s one reason so many charitable conversations begin after a significant financial event, which is why significant financial events often lead to high-profile philanthropy announcements, as recently occurred in connection with the sale of the Seattle Seahawks.

Many people in this situation find they have the time and flexibility to think more intentionally about the causes, organizations and communities that have shaped their lives, especially now that they have the financial resources to act on their intentions. Some want to express gratitude for opportunities they’ve received. Others hope to create opportunities for future generations or honor family members. Still others simply want to make sure the success they’ve enjoyed continues benefiting others for years to come.

As you look ahead in your life and anticipate big milestones, consider taking steps early so that you’re prepared to implement a philanthropy plan. For example, here are a few things you can do even years before a significant liquidity event:

• Consider establishing a donor-advised fund at IPCF so you can get familiar with the mechanics and the resources available at IPCF. You’ll be able to set aside charitable dollars while taking the time to thoughtfully consider which organizations you would like to support over the months and years ahead, especially following a financial transaction.
• In addition to your donor-advised fund, you might also want to establish one or more designated funds to provide lasting support for the specific organizations you care about. These funds can provide support during your lifetime or receive an estate gift under your will or trust.
• Some people also establish a field-of-interest fund at IPCF as part of their charitable giving “portfolio” to address particular community needs, as well as unrestricted funds that allow IPCF to respond to the area’s greatest opportunities for generations to come.

Remember, in the case of private business interests, from a capital gains perspective, you may be far better off establishing charitable arrangements well before a transaction is underway. Please consult your tax advisors and the IPCF team as you think about an exit plan for your closely held business. Of course, if you’ve recently experienced a liquidity event and haven’t yet established a charitable plan, it is not too late!

Whether you’ve already experienced a significant financial event, or expect one in the future, we’d love to talk. IPCF can help you explore charitable options that reflect your values, support the causes you care about and create a legacy that extends far beyond a single moment of success.

This article is provided for informational purposes only. It is not intended as legal, accounting or financial planning advice.