Phil Savage
Phil Savage IV is a director at Fennemore’s San Bernardino office. His practice focuses on helping clients navigate complex legal matters, including business succession, estate planning, and trust administration. With a keen eye for detail and a client-centered approach, Phil guides individuals, families, and businesses in preserving wealth and ensuring a smooth transition of assets. Phil was named IECF’s Professional Advisor Champion in 2023 for his expertise in supporting the region through partnerships with the Foundation.
Phil was our guest speaker at the November 2024 meeting of the IECF Professional Advisor’s Council, where he spoke on the topic of “How to Talk to Your Clients about Charitable Giving.” We’re pleased to share this summary of his presentation.
Phil Savage IV
My journey with IECF began when I was a young attorney. My boss, who was also an advisor, introduced me to the foundation while assisting a client with charitable giving. We met with the then-director of IECF over lunch, discussing how to structure a gift for our client. That initial introduction set the stage for my enduring relationship with the organization, including 12 years on the board, which has given me invaluable insight into helping clients meet their charitable goals.
Estate Planning and Its Challenges
In my 30 years of practicing law in Riverside and San Bernardino, I’ve specialized in estate planning, helping clients protect their assets, care for their families, and achieve their broader goals. Over time, I’ve worked with a variety of organizations—some extraordinarily well-managed and others more challenging. What I’ve observed is that the effectiveness of an organization often depends on its leadership, which can fluctuate over time. This variability makes it crucial for clients to carefully consider the long-term sustainability of the organizations they wish to support.
When I sit down with clients, I aim to understand their goals and help them achieve them using the tools available. I help them plan their estates, protect their assets, and distribute their assets efficiently. My role is to educate clients and empower them to make their own decisions without directing them or telling them what to do. I want them to actively consider their options and make conscious choices. I disclose my involvement with IECF and explain why it can be a smart choice for clients, but I emphasize the importance of independent decision-making.
I find it’s also crucial to involve both spouses in the discussion to ensure both partners are aligned with the plan. If one spouse passes away, the surviving spouse may have different priorities and may not want to follow the original plan.
Encouraging the Practice of Giving Now
One of the most effective ways for clients to explore charitable giving is simply to start giving, even in small amounts. Giving now allows clients to experience the joy and impact of their philanthropy firsthand. For instance, if a client regularly donates $100 a month to their church, I’ll ask, “Would you like that support to continue after you’re gone?” This often sparks a deeper conversation about how to incorporate sustained giving into their estate plan.
Starting small can also lead to greater giving down the road. A client might make an initial gift to an organization to see how it handles their donation and what kind of impact it creates. Over time, this relationship can grow, and clients may feel inspired to give more significantly. The act of giving—no matter the size—often opens the door to broader possibilities.
Focusing on the Client’s Goals
When I work with clients, my approach is to listen, learn, and guide rather than dictate. I encourage my clients to reflect deeply on their goals, which often evolve during our discussions. Many start with the default idea of leaving everything to their children. However, as we explore their values and aspirations, clients frequently realize they want their estate to reflect broader priorities—supporting causes they care about, ensuring their children inherit responsibly, and sometimes even fostering a legacy of community engagement.
For instance, a client with a successful business once told me, “I don’t want all this money going to my kids—it’s too much.” This led us to discuss options like donor-advised funds or endowed funds, which allowed him to balance providing for his children with giving back to the community.
Educating Clients on Options
A significant part of my role is education—helping clients understand their options without pushing them in any specific direction. For instance, I often recommend donor-advised funds (DAFs) for their flexibility. DAFs allow donors to support multiple causes over time, offering them the freedom to adjust their giving as their priorities change. I also emphasize that working with IECF provides access to local expertise and a variety of fund options, such as endowed funds, scholarships, or field-of-interest funds. These options allow donors to align their giving with their passions.
Another tool I recommend is a charitable remainder trust (CRT), particularly for clients with appreciated assets like real estate or stocks. CRTs enable donors to defer or avoid capital gains taxes while securing an income stream and leaving a charitable legacy. For example, a client recently considered selling a highly appreciated property. By placing it in a CRT, they avoided immediate capital gains taxes, ensured a steady income, and provided for a charity upon the trust’s termination.
Navigating Family Dynamics
One of the most delicate aspects of estate planning is addressing family dynamics. Clients sometimes face difficult decisions, such as disinheriting a child or significantly altering traditional distributions. I encourage clients to communicate their intentions with their families while they are still alive. While these conversations can be challenging, they can prevent misunderstandings and resentment after the client’s passing.
The Power of Donor-Advised Funds and Community Expertise
One of the most versatile tools is the donor-advised fund, especially through IECF. These funds allow clients to support causes locally and nationally, adapt their giving over time, and even engage family members in philanthropic decisions. For example, a client passionate about equine therapy wasn’t sure which organization to support. IECF’s team provided a list of reputable nonprofits, enabling the client to make an informed decision.
Additionally, IECF offers personalized services that go beyond what larger, national DAF providers can offer. With its investment expertise, commitment to community leadership, and tailored support, IECF ensures donors’ goals are met while making a lasting impact.
A Final Thought on Legacy
Ultimately, estate planning and charitable giving are about creating a legacy that reflects one’s values. Whether it’s through a simple gift annuity, a complex CRT, or a thoughtfully structured DAF, the goal is to align financial planning with personal priorities. By starting the practice of giving now—even in small ways—clients can build a philanthropic habit that grows over time and leaves a lasting impact on the causes they care about most.
Our Charitable Giving Team is here to help donors design the giving experience that suits their needs and goals. Contact us to start the conversation today!
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