What Is Your Charitable DNA?
by Byron T. Deese, CEPA, Engage Wealth LLC and member of the Central Florida Foundation Professional Advisory Council
Table of Contents
Since the pandemic, one of my favorite topics to discuss with clients is public-private partnerships, or P3s. These dynamic collaborations involve all three sectors of our economy (private, public, and independent) and have proven time and time again to be our best bet for overcoming tough circumstances. We can all remember how vulnerable everyone throughout the world was as we faced an invisible threat and the need for global support, unlike anything I’ve experienced in my lifetime. It’s become clear to me that P3s are critical to have in place for a truly resilient community in the face of disaster.
One component of a P3 is the independent – or charitable – sector, which includes nonprofits and faith organizations. This sector is often at the ground level, providing necessary human services and a foundation of hope for the people most affected by social problems; however, it also holds subject-matter experts, conducts research and data collection, and often carries the “heart” piece of the equation.
In wealth management, I like to discuss these partnerships, specifically touching on the contributions of the independent sector, because the conversation helps families give their financial goals an identity or a mission.
As an effort to strengthen America’s independent sector, my personal commitment is to help individuals know and understand their Charitable DNA.
Understanding Your Charitable DNA
Let’s start with how you likely understand DNA.
What is DNA? Deoxyribonucleic Acid is a molecule that contains genetic information for building and maintaining an organism. It’s found in the cells of all living things. The fundamental and distinctive characteristics or qualities of someone or something, especially when regarded as unchangeable.
Your charitable DNA is also a component of you – what makes you tick, motivates you, and speaks to you when it comes to helping those in need. What do you care about? What do you want to focus your charitable efforts on?
Importantly, your Charitable DNA is as unique as you; however, just like with your molecular DNA, the people closest to you might share some of that same Charitable DNA. This is when family philanthropy comes into play, which your financial advisor and a Chartered Advisor in Philanthropy® can help you navigate.
Developing a Charitable DNA Action Plan
It’s never too late to identify your Charitable DNA and I recommend designing a charitable portfolio as an effort to create an action plan. Here are three basic steps to get started:
Step #1: Find a professional advisor who partners with a community foundation. Advisors who have relationships with community foundations are already in tune with the work being done by nonprofits and understand how to tap into community knowledge. You can find a list of local professional advisors, including myself, on Central Florida Foundation’s Professional Advisory Council list. These professionals are trusted advisors working in our community and partnering alongside our region’s community foundation for an even better Central Florida.
Step #2: Work with your professional advisor and community foundation partners to develop a charitable giving strategy that reflects your Charitable DNA. Advisors will work with the community foundation to schedule a meeting with you to get to know the motivational values that move you toward a particular charitable direction, which helps define and understand your Charitable DNA. This can be a simple one-time meeting or as involved as a one-day retreat with your family members to determine your family’s shared Charitable DNA.
Step #3: Work with your professional advisor and community foundation partners to determine how charitable giving fits into your larger financial portfolio to ensure an advantageous outcome for both you and the causes you support.
Pointers from a Professional Advisor
While each portfolio is unique to each client, I do have a few basic recommendations from a professional advisor’s perspective:
Recommendation #1 Private Foundation vs. Donor-Advised Fund
If you are considering setting up a private foundation, make sure you know the difference between this option and establishing a Donor-Advised Fund (DAF) with a community foundation. Leveraging the power of a DAF provides you with a complete administration back-end office to keep your charitable intents going, taking the burden of you. A community foundation can also serve as your charitable advisor, providing local data about organizations that might support your Charitable DNA mission.
DAFs have become popular since the Tax Cuts and Jobs Act of 2017 was enacted. A DAF is like a private foundation but without the administrative burden. An account is created with a sponsoring nonprofit organization like the Central Florida Foundation, a contribution is made, and then the organization takes control of the funds by managing the assets. The donor receives a tax deduction in the year of the contribution. The donor then advises the sponsoring organization on which charitable organizations should receive the donation and when.
Recommendation #2 Be open to creative approaches.
If your professional advisor is charitably informed and/or works with community foundations, then they will also be well-equipped to provide creative solutions to achieve your financial and charitable goals.
There are numerous ways to support charitable organizations financially. A donor may bequest specific assets to charity through their will, create a private foundation to provide annual support for select charities, make gifts to certain trust instruments that generate income for the donor, name a charity as beneficiary of a retirement plan or life insurance policy, or any of a host of other planned giving techniques. The appropriate technique will depend on the donor’s specific objectives.
Recommendation #3 You can achieve more than one charitable goal with both a community-focused professional advisor and a community foundation by your side.
Oftentimes, charitable giving can feel overwhelming. Where to give? How much? What will make the most impact? While it might feel like a lot, having a team of a professional advisor and a community foundation by your side makes creating an action plan for you within reach.
For example, I’m often asked by clients if they should focus on immediate needs or future goals. If your charitable giving goals include a desire to give to both long-term and short-term causes, consider a 75/25 split. Long-term goals can mean organizations you’d like to support well into the future and short-term goals might look like emergency relief efforts, such as hurricane recovery.
Your Charitable DNA: The Takeaway
At the end of the day, your Charitable DNA influences your unique charitable portfolio, which represents your personal contribution to society. Your professional advisor and your local community foundation serve as your advisory team to help align your personalized Charitable DNA with meaningful action.
Charitable giving is vital to Central Florida and in neighborhoods across the country where organizations and activities can change a community’s trajectory. Our region is only as strong as our most vulnerable citizens.
I am proud to help so many individuals, families, and businesses align their financial and philanthropic goals, so they can make a difference. I partner with community foundations throughout the country as a professional advisor, ensuring I provide the most comprehensive financial and charitable giving plans and support to clients who care about a better tomorrow. You can play an important role in strengthening the independent sector in public-private partnerships by knowing and prioritizing your Charitable DNA.
Byron T. Deese is the CEO of Engage Wealth and founder of the Dream Makers Network LLC. He served as the Relationship Development Manager for Glass Jacobson Wealth Advisors. Byron specializes in providing retirement services and employee benefits for small businesses. He is a Certified Exit Planning Adviser (CEPA), and is a licensed insurance agent in Life, Health, and Annuity by the State of Maryland. A native of Sanford, Florida, Byron is a graduate of Tuskegee University in Alabama, with a bachelor’s degree in finance.
Byron is active in the community, as he served as a Board Trustee for the City of Baltimore Employees’ (ERS) and Elected Officials’ (EOS) Retirement Systems. He also serves as a Board Chairman for the Baltimore City Community College Foundation, Baltimore Civic Fund, Abilities Network, and Associated Black Charities. In 2020, Byron was inducted into the Professional Advisor Recognition Society (PARS) by the Baltimore Community Foundation and is also a member of their Investment Committee. In 2023, he was appointed to serve on the Professional Advisory Council for the Central Florida Foundation. Byron is married to Maria Campbell Deese, and they have one daughter, Matyson Aleah. You can learn more about Byron on his LinkedIn here.
As Central Florida Foundation’s Vice President of Philanthropic Strategies and Partnerships, Nicole Donelson leads and manages the annual plan for business revenue, growth of assets and fund holder satisfaction. She also works collaboratively with families and individuals in creating impactful legacies and guides professional advisors in offering comprehensive philanthropic strategies to community-minded clients.
Originally from California, Nicole holds a degree in Psychology from University of California, Davis and has almost two decades of nonprofit experience with a focus on business development and relationship building. Prior to her role at the Foundation, Nicole served as Executive Director for the American Diabetes Association with responsibility for four markets across the state of Florida.
Nicole serves on the board of the Central Florida Estate Planning Council, is a member of Florida Executive Women (FEW) and is a Chartered Advisor in Philanthropy®.
Outside of work, Nicole enjoys spending time with her friends and family – which includes her husband and two children. She has a passion for health and fitness and any opportunity to enjoy the outdoors. You can connect with Nicole by sending her an email or giving her a call at 321-966-2588.
As our region’s community foundation, Central Florida Foundation serves as a launchpad for high-impact philanthropy. Championing the collective power of head, heart and dollar, we coordinate the commitment and investment of philanthropists, nonprofits, and community partners to target today’s most critical challenges and those on the horizon to truly transform our community. The Foundation also offers expert giving advice, a personalized approach to managing charitable funds, and the capacity to convene collaboration across sectors. Learn more about why working with a community foundation is different here.
Tags: charitable dna, council, funds, professional advisor