Philanthropy is most effective and sustainable when it is connected to what matters most to you. At Samra Wealth Management, we will work with your family or business in determining the best strategy and time for you to give to a cause important to you. Contact us today to talk about:
Endowments, Foundations & Grant Making
Donor Advised Funds
Charitable Gifts of Life Insurance
We will work with your non-profit, school or religious organization in maximizing the donations.
Donor Advised Funds
A donor-advised fund is like a charitable investment account, for the sole purpose of supporting charitable organizations you care about. When you contribute cash, securities or other assets to a donor-advised fund at a public charity, you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth and you can recommend grants to any IRS-qualified public charity.
This charitable giving strategy generates income and can enable you to pursue your philanthropic goals while also helping provide for living expenses. Charitable trusts can offer flexibility and some control over your intended charitable beneficiaries as well as lifetime income, thereby helping with retirement, estate planning and tax management
Private Family Foundations
A private family foundation is a type of private foundation set up by a family, funded with the family’s assets and often run by family members who can also participate in its charitable grantmaking. It can last as long as the family needs it to serve its philanthropic ambitions, and it can adapt as the family’s composition and charitable focus change.
Do your investments align with your beliefs
For the most part, financial advisors utilize a two-dimensional wealth management process: identifying their client’s financial position, establishing a financial end-goal, and investing assets with the intent of reaching this end-goal. Clients who are typically not deemed to be industry experts, are led to believe they need to generate an annualized return in order to reach their financial goals. However, a deeper look into the client’s full financial picture, will likely indicate other financial factors not taken into consideration. Factors such as the client’s annual charitable contributions, religious beliefs, and societal views.
Meaningful conversations with our clients help distinguish their true expectations. An investor may be willing to accept a lower annualized return, knowing their portfolio avoids investments in hydrocarbons, or invests in accordance with their religious beliefs. For clients who make annual charitable donations, making a contribution towards a specific cause or for the betterment of society may be a higher priority than a return on their investment portfolio. For example, an individual with an investment portfolio of $1 million making an annual charitable donation of $10,000 expects no return on their charitable contribution, however, has an expectation of return on their investment portfolio.
An alternative for this client may be to invest in an impact investment vehicle, referring “to an investment made into companies, organizations and funds with the intention to generate a measurable, beneficial social or environmental impact alongside (or in lieu of) a financial return”. A more suitable strategy for this investor would be to educate the client on impact investing and weigh up the pros and cons of allocating a part of their investment portfolio towards impact investments. An impact investment portfolio yielding 1% less than the non-impact investment portfolio would provide this investor with the same net benefit: a portfolio yielding an acceptable annualized return, while investing in areas generating a beneficial social or environmental impact. Furthermore, the investor has the capacity to increase investment allocations, or divert future charitable contributions towards the impact investment, potentially creating a scenario of compounded returns or in this case compounded benefit towards social good.