Charitable giving is an effective way to shape the world around you while also aligning your wealth with the values that matter most.
For many high-net-worth families, philanthropy becomes a way to build clarity, purpose, and long-term impact. The right charitable giving strategies can also support thoughtful tax planning, allowing your generosity to go even further.
1. Donate Appreciated Securities Instead of Cash
Donating appreciated stock, ETFs, or mutual funds often offers greater tax advantages than donating cash.
By transferring investments directly to a qualified charity, you typically avoid capital gains taxes while still deducting the asset’s fair market value.
Here are a few benefits of donating appreciated securities:
- Avoiding capital gains tax on highly appreciated assets
- Potentially claiming a larger charitable deduction
- Allowing charities to receive the full value of the asset
2. Use a Donor-Advised Fund (DAF) for Strategic Giving
A donor-advised fund remains one of the most flexible and tax-efficient tools for charitable giving for HNW individuals. You can contribute to the fund with cash or appreciated assets, claim an immediate deduction, and distribute grants to charities over time.
A DAF also gives you space to involve family members in philanthropic decisions, helping you create a long-term vision that extends beyond one tax year.
When used thoughtfully, a DAF becomes a bridge between generosity and legacy — allowing your giving strategy to evolve as your priorities do.
3. Make Qualified Charitable Distributions (QCDs) from an IRA
If you’re 70 and a half years old or older, a qualified charitable distribution offers a way to give directly from your IRA to a charity without increasing taxable income for the year.
QCDs can also be part of your required minimum distribution, helping maintain tax efficiency in retirement.
A QCD may be right for you if:
- You are taking required minimum distributions
- You want to reduce taxable income
- You prefer gifting directly from retirement assets
4. Bunch Charitable Contributions for Greater Tax Impact
Bunching contributions is a strategy designed to maximize deductions by concentrating multiple years of charitable gifts into a single tax year.
This strategy can be especially beneficial for donors whose itemized deductions fall just short of the standard deduction threshold.
Situations where bunching may be most effective include:
- Years with unusually high income
- When paired with a donor-advised fund
- When planning large one-time charitable gifts
5. Gift to Charities Through a Family Foundation
For families seeking deeper involvement in philanthropy, creating a private family foundation can offer long-term structure and control.
Foundations allow you to define a charitable mission, involve multiple generations, and build a legacy rooted in shared values. Beyond tax advantages, this approach provides a meaningful way to pass down values, not just wealth.
By creating a consistent philanthropic identity, a foundation becomes a powerful reflection of who you are and the lasting good you intend to make.
6. Donate Complex Assets (Real Estate, Business Interests, Art)
High-net-worth individuals often hold wealth in nontraditional forms, including real estate, business interests, collectibles, or artwork.
Many of these assets can be donated directly to qualified charities, offering significant tax advantages while simplifying estate and liquidity planning.
Complex assets that can be donated include:
- Residential or commercial real estate
- Closely held business interests
- Artwork or valuable collectibles
Donating these assets requires due diligence and proper valuation, but it can also unlock new avenues for meaningful and impactful giving.
7. Leave a Charitable Legacy Through Your Estate Plan
Charitable bequests, trusts, and beneficiary designations allow you to support organizations you care about while reducing estate taxes and creating a lasting philanthropic footprint.
Naming charities as beneficiaries on retirement accounts, structuring charitable remainder trusts, or adding philanthropic provisions to your will can each serve as long-term vehicles for impact.
Working with a seasoned team for private client services in Scottsdale ensures your estate plan remains aligned with your goals, values, and legacy vision.
Bringing Purpose and Strategy Together in Your Charitable Giving
Thoughtful generosity requires more than good intentions — it requires clarity, strategy, and a vision for how your wealth can support both your life and the world around you.
If you’re exploring which approach aligns with your personal goals, we’re here to guide you with the same level of personalized attention that defines every aspect of our work.
Discover your true wealth by creating a giving strategy that supports both your legacy and your Return on Life. Schedule a private consultation today.
Frequently Asked Questions About Charitable Giving Strategies
The right strategy depends on your income, asset mix, tax objectives, and long-term philanthropic goals. We help you evaluate each option so your giving aligns with both your financial plan and personal values.
Both can be strong vehicles for meaningful giving, but they serve different purposes. Donor-advised funds offer simplicity and flexibility, while private foundations provide long-term structure, family involvement, and greater control for high-net-worth families in Scottsdale.
Yes. With proper planning, charitable giving can reduce income taxes, capital gains taxes, and even estate taxes. The key is choosing methods that align with your financial position and long-term goals.
