You’re the first to reach into your wallet to help a worthy cause. You’ve sponsored, you’ve donated, and you’ve bought your fair share of Girl Scout Cookies.

We all want to make a significant difference. But have you ever taken a step back to think more strategically about your charitable giving to ensure you’re making the biggest impact possible?

Beyond the Collection Plate: A Well-Thought-Out Approach to Philanthropy

Philanthropy can be more than just a series of one-off donations. By taking a tactical approach, you can ensure your generosity truly addresses the issues you care about. This involves asking yourself some key questions:

What matters most to you? Identify the causes closest to your heart and the issues you want to help. What should your plan look like? Determine a comfortable and sustainable giving level that fits your budget. Are you donating to a reputable cause? Research to confirm your donations support effective organizations. Consider factors like transparency and efficiency. Should you give beyond cash? Explore alternative ways to donate, such as appreciated stock or volunteering your time and skills.

Smarter Giving and Tax Benefits

Building an impactful philanthropic plan requires careful consideration. It should also be integrated with your overall financial and tax planning strategies. Together, we can explore options like:

Donating Appreciated Assets | Reduce capital gains taxes by donating stocks or other assets that have increased in value.

Optimal Donation Timing | Bunching donations in high-income years can optimize tax benefits.

Low-Basis Stock Gifts | Donating stock that you’ve owned for a long time but hasn’t appreciated allows you to deduct the fair market value from your taxes while avoiding capital gains taxes on any minimal increase.

Donor-Advised Fund | Think of this as a charitable savings account. You contribute assets, receive an immediate tax deduction, and then recommend grants to your favorite charities over time. This offers flexibility and allows for the future involvement of family members in your philanthropy.

Charitable Remainder Trusts (CRTs) | This type of irrevocable trust is designed to provide you or another beneficiary with income for a set period. After that time, the remaining assets are passed to a designated charity. CRTs offer tax deductions on your initial contribution and potentially bypass capital gains taxes on donated assets.

Charitable Lead Trusts (CLTs) | Unlike CRTs, CLTs pay a fixed amount to a charity for a set period. Then, the remaining assets go to your chosen beneficiaries. CLTs can be useful for reducing your estate tax burden while supporting a cause you care about.

Estate Plan Revisions | Update your estate plan to incorporate charitable giving into your legacy and potentially minimize taxes on your estate.

Let’s schedule a time to review your charitable endeavors!

Do any of the strategies above intrigue you? Simply click reply to this email so together we can create a philanthropic plan that aligns with your values and maximizes the impact of your generosity.