Introducing Our New Division: Philanthropy Architects with Greg Ring
Innovest is excited to announce our partnership with Greg Ring in creating a new division called Philanthropy Architects. In a rapidly changing philanthropic landscape, Greg has been at the forefront of developing innovative approaches to charitable giving. His partnership with Innovest to launch Philanthropy Architects is set to revolutionize how individuals contribute to causes they care about. In this exclusive interview, Greg Ring shares his insights into the power of “Balance Sheet Philanthropy” and its potential to bridge the gap between asset owners and charitable organizations.
1) Tell us about your background and why you chose to partner with Innovest in rolling out Philanthropy Architects.
It has been my privilege to serve US nonprofits for the past 44 years. The first three decades of that work focused on helping people with federal estate tax exposure. We were able to help them reduce or eliminate those estate taxes in favor of charities they care about, but as the exemption equivalent increased, I chose to shift the focus to current gifts to charity. More than 10,000 baby boomers retire each day, and many of these boomers are selling various appreciated assets. These assets could range from a rental property or vacation home to a wildly successful enterprise. When these appreciated assets are sold, this individual often faces the largest single tax bill of their life. Our planning allows them to redeploy those tax dollars to various charities that they care about. This becomes the convergence with Innovest. The Innovest team has a long and successful history of serving both charities and ultra-high-net-worth individuals. With that in mind, it seems natural to partner with Rich, Wendy, and the team to help both these charities and their clients engage in what we call Balance Sheet Philanthropy.
2) Can you further explain Balance Sheet Philanthropy and its impact on both donors and nonprofits?
Last year, Americans gave more than $500 billion to US nonprofits. But the vast majority of this came in the form of folks writing checks. The average American has about 9% of their net worth in cash, while 91% is in assets. Balance Sheet Philanthropy provides the tools and strategies to help these folks give to charity from their balance sheet, using highly appreciated assets. When this happens, they get two tax benefits. A gift of cash creates a charitable deduction, but when somebody gives a highly appreciated asset, they now get additional tax benefits. Of course, they get the charitable deduction for the fair market value of the asset, but they also avoid all the accumulated long-term capital gains taxes. For some individuals, this can be millions of dollars in tax savings. It leverages the balance sheet and, as we like to say, allows them to “disinherit the government in favor of charity.”
3) What services does Philanthropy Architects provide for charities and nonprofits?
Most US charities are focused on direct mail, golf, tournaments, dealers, and similar. All these events are focused on people writing a check. Very, very few charities have anyone on staff with the expertise and experience to have a knowledgeable conversation with a donor on the sale of a family-owned business, commercial rental property, oil and gas royalties, etc. Philanthropy Architects comes alongside these charities as an adjunct to their staff and provides expertise to their donors. This becomes a much more cost-effective way for charities to encourage gifts of assets.
4) How will Philanthropy Architects find solutions for our clients?
It is an honor to partner with Innovest and serve both charity nonprofits and high-net-worth donors. Our approach is simply exposure and education. We invite charities and individuals to “opt in” for more information. They may be considering the sale of an appreciated asset and determining their options. We will work with their CPA, attorney, financial advisor, etc., to fine-tune the recommendations and help an individual discern what makes the most sense for their family.
By focusing on Balance Sheet Philanthropy, Philanthropy Architects is poised to empower high-net-worth donors and nonprofits to achieve their goals more effectively. Philanthropy Architects aims to unlock the potential of appreciated assets through education and strategic planning. For those interested in exploring these opportunities, partnering with Philanthropy Architects may be the key to transforming your philanthropic journey.