Professional Advisors

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We are finding that our activities are of increasing interest to professional advisors who have clients who would like to find out more about giving back to their community and the most tax efficient way to support their charitable giving.

If you are a lawyer, accountant, financial planner, investment advisor, or have a specific interest in the technical aspects of planned giving, we hope this section will be of assistance in advising your clients.

Community Foundations are an ideal vehicle for philanthropists to provide some structure to their giving and offer a flexible alternative to creating individual trusts or foundations, which can prove complicated to set up and administer.  We offer advice and expertise which is designed to help clients make informed charitable investment decisions and engage in important local community issues whilst providing tax benefits.

Whether your client is looking to establish a named family fund through a donation, leave a legacy for the future through a gift in their will or is considering transferring an existing trust, we can work with you and your client to find the best solution.

Find out more about the various ways that we can help you and your clients below and in our Working in partnership with professional advisors document.

Tax effective giving

As a registered charity, we can claim gift aid and charitable gifts left to us in a Will are exempt from inheritance tax and could help to reduce the overall tax paid on your client’s estate. There are also tax benefits available through lifetime giving. For general information about gifts from individuals to charity, please view the Gifts by Individuals section of the HM Revenue & Customs website

Legacies

Whether your client is considering leaving a gift in their Will from the remainder of their estate once family are provided for, a fixed amount specified or particular items such as property, an antique or shares, there are a number of options to ensure your client’s legacy achieves what it wants to. Often smaller charities are overlooked when it comes to legacies and the Foundation offers a way of ensuring that it reaches these smaller groups and does the most good in your client’s local community. Your client may choose to ask the Foundation to allocate your gift to one of our theme based funds, or one in a particular geographical area. Alternatively, they may decide to create a named fund to support their own particular charitable interests as well as ensuring their name lives on in the future.  Find out more about how we can help clients who would like to leave something for Norfolk by clicking here.

Gift of shares

Giving shares to charity has long been a useful way of unlocking capital and passing it on to good causes. Donations made in this way are eligible for full personal income tax relief as well as exemption from capital gains. A gift of £1,000 listed shares could reduce a basic rate taxpayer’s income bill by £220 and a higher rate payer’s by £400. In addition, no capital gains tax is payable on gifts of shares to charity. Similar relief also applies to donations of land or buildings. We can help you advise your clients on how to arrange the transaction or offer guidance.

Setting up a fund

Establishing a named fund through Norfolk Community Foundation works just like a charitable trust but is a lot easier for to manage. Please see our Comparative Table, which highlights the benefits and comparisons. We handle the investment, correspondence, compliance and governance. This leaves your client free to focus on building their fund, perhaps over a number of years, and helping us decide which applications should receive a grant from the fund. find out more about how we can work together to help your client set up a fund here.

Transferring an existing fund

There may be certain circumstances when there will be benefits in considering the transfer of trusteeship of an existing trust fund to the management of Norfolk Community Foundation. This does not necessarily mean that your client would give up all involvement – we work closely with our donors to ensure that their wishes are met, now and in the future. You might wish to consider the following points when advising clients who are considering the transfer of an existing fund:

  • Small trust fund – if the income from an existing fund is relatively low, it may not warrant the expense of administration. By pooling resources, both in fund management and grant administration, the Foundation is able to maximise the impact of whatever capital is available.
  • Trustee responsibility – it is generally agreed that the responsibilities assigned to trusteeship are becoming more onerous. Perhaps current trustees no longer want that responsibility, or do not have other trustees to take on the role. It may be that the involvement of the family of the original benefactor is no longer available, or that you, as a professional advisor, are finding that you have little time to devote to being a trustee of a trust fund. In all cases, the Trustees of Norfolk Community Foundation could take on that role.
  • The remit remains the same – in considering the transfer of such fund, it is important to stress to your client that we will honour the wishes of the original benefactors, in perpetuity. Norfolk Community Foundation is here to stay and successive Trustees will work to the remit that is agreed at the time of the transfer. Clients can be confident that their wishes will be adhered to, for generations to come.
  • The Charity Commission – The Charity Commission does recognise that community foundations provide suitable alternative stewardship of existing trust funds and are helpful in identifying the process required for the transfer.

As each case will be individual, we would be pleased to discuss the transfer of trust funds on behalf of your client.

Assets from closing charities

Historically, trustees of charities and voluntary groups have had to agree on closure of their services for a range of reasons. Currently, all kinds of organisations in the voluntary sector are facing particular challenges and there are indications that the numbers having to make difficult decisions leading to closure are increasing. It is not uncommon for organisations to have residual funds and the trustees will be required to distribute these in accordance with the dissolution clause in their governing document. This usually means that the funds are given to a charitable organisation providing similar services.  you can find out more about closing or transferring a charitable trust here.

Trustees of groups facing closure may consider that the work that the Norfolk Community Foundation does to support local communities and individuals is in line with the aims of their group and that a transfer of funds to the Foundation would ensure a worthwhile and effective use of remaining assets. Any group or charity wishing to pursue this should ensure that this action is in compliance with their governing document, and where relevant, has the approval of the Charity Commission. The Foundation welcomes a discussion with charities, voluntary and community groups (or the professional advisors who are acting on their behalf) who would like to find out more about how any funds donated to the Foundation would be put to use and the checks and processes in place, for this to happen.


Please contact Graham Tuttle, Chief Executive Officer on 01603 623958 if you have any questions or would like further information on how we can help your clients fulfil their philanthropic ambitions.