MaineCF: What sort of conversations do you have about charitable giving with your clients?
Brian Bernatchez: I’ve always tried to get folks who have an interest in charitable giving to think about giving either as a percentage of income during their lifetimes or as a percentage of net worth through their estate plan. I recently had a call with a couple in their mid-60s who saw a big financial change when a parent passed away. We created a plan with a certain percentage of their annual income for them, a percentage to give to extended family, and a percentage for charity. Sometimes when you just talk about a number or specific dollar value, it can seem overwhelming, so breaking it down to a percentage can be helpful.
Most of our clients are past the years of accumulation and have reached a point where they don’t worry about running out of money. They want to focus more on their family legacy. I encourage them to accelerate their giving during retirement so they can realize some of the benefit and enjoyment of making a difference for others while they are alive. Giving can and should be fun!
MaineCF: What changes have you seen in clients’ approaches to giving in the past year?
Bernatchez: Everybody has more time to think about these things and they’re focusing on impact.
A lot of times clients will hesitate to give because they don’t know which organization does what they want to support. This is where MaineCF’s unique set of skills can help. You provide solid risk-adjusted, long-term investment returns from an extraordinary team of professionals who are passionate about living in Maine. You also have a great deal of knowledge about Maine communities and the nonprofit organizations that address their needs.
The other thing that’s changed in the last year is the urgency for giving. Just as MaineCF made an immediate and impressive pivot to proactively focus on food insecurities, shelter, and other needs because of the shutdown, a lot of clients shifted their giving as well.
MaineCF: You are also involved in our new Kennebec County Fund – you and your company have been very generous. Can you tell us why?
Bernatchez: When I started getting involved with MaineCF, I was shocked that Kennebec County was the only county without a fund. Amy and I are Kennebec County products who benefited greatly from the generosity of others while growing up and raising a family here. Our entire family went to schools in Kennebec County. I went to college in Kennebec County. So, if we’re going to focus on anything, at least initially, it’s going to be on getting the Kennebec County Fund up to speed and building momentum right in our backyard.
MaineCF: Do you think the Kennebec County Fund will benefit professional advisors and if so, how?
Bernatchez: Mostly through awareness and education about what MaineCF has to offer advisors and their clients. Professional advisors who want to add value to their relationship with their clients can use the foundation as an important tool in their toolbox. Introduction to the Kennebec County Fund will help professional advisors be more aware of MaineCF and what it can do for the local community and also understand what a resource it is for them.
Giving has in some ways become more complex with tax law changes and people want to be more connected to charities and causes that matter most to them. Once everything opens up again, MaineCF will invite all Kennebec County professional advisors to an awareness event that was delayed due to COVID-19.
MaineCF: Under what circumstances have you found it helpful to turn to MaineCF as a resource?
Bernatchez: I reach out to MaineCF when a client knows there is a need in a community and they want to help, but they do not know how to best meet the need. MaineCF’s knowledge can help guide them and me.
For myself as a professional advisor, I reach out to MaineCF when I have a question or need a refresher about charitable giving strategies and what might work for a particular client situation. Nobody needs to know everything anymore; we just need to know who to ask.
MaineCF: Are there any particular conversations you have with younger clients about charitable giving?
Bernatchez: If I could wave a magic wand and start my career over working with people in their 30s to 50s, I would put the importance of lifetime charitable giving more at the centerpiece. Our firm tries to include it in conversations we have with all clients whether they’re 30 or 90. It is important to begin the discussion early because if clients get into the habit of being philanthropic in their 20s and 30s, they realize it really doesn’t end up costing them anything. They get it all back with the happiness and fulfillment that comes from making a difference in their community.
Brian Bernatchez is the founder and managing director of Golden Pond Wealth Management in Waterville. A 1988 graduate of Thomas College, he received his Certified Financial Planner (CFP) designation in 1997. He currently serves on the boards of Thomas College, Maine Community Foundation, Alfond Youth and Community Center Founders Club, and the Jobs for Maine Graduates investment advisory committee.
Photo: Brian and Amy Bernatchez at their home on McGrath Pond in Belgrade.
