6 Tips for Philanthropic Giving

With thoughtful planning, you can extend your legacy of charitable giving, creating a meaningful, lasting impact for the causes you care about. Philanthropic giving, which focuses on addressing the root causes of social challenges, can be an integral part of your financial plan — and may also offer tax benefits.

Here are six essential tips to guide you as you incorporate philanthropy into your financial goals:

1. Identify Your Values
   Define the purpose behind your giving and the change you wish to make. Decide how long you’d like your philanthropy to last and whether it should become part of your family’s legacy.
2. Set Clear Goals
   Work with financial professionals to establish a giving plan that aligns with your broader financial strategy. Regularly evaluate your giving schedule, such as annual or quarterly contributions, while considering options like estate planning, retirement giving, or incorporating philanthropy into a business-exit strategy.
3. Choose Reputable Charities
   Research organizations to ensure they align with your values and are legitimate. Look for 501(c)(3) status for tax-deductible contributions, and confirm the charity’s credibility using tools like the IRS Tax Exempt Organization Search.
4. Maximize Your Giving Potential
   Strategize with tax professionals to optimize the tax advantages of your donations. Options like Qualified Charitable Distributions (QCDs), donation bunching, and itemizing deductions can enhance both your impact and your tax efficiency.
5. Select the Right Giving Strategies
   Incorporate tools like charitable trusts, private foundations, or donor-advised funds to streamline your giving efforts. These strategies offer unique benefits, such as minimizing taxes or enabling long-term support for causes you care about.
6. Explore Alternative Assets
   Beyond cash, consider gifting assets like real estate, life insurance policies, art, or collectibles. Proper appraisals and documentation can ensure these contributions benefit both you and your chosen charity.

Our team is ready to collaborate with your legal and tax professionals to develop a customized philanthropic strategy that fits your financial goals. Together, we can help you achieve your giving objectives while creating a lasting legacy.