In This Issue:

  • Charitable Donation Strategies: Giving Back with Intention
  • Market Update
  • Memorial Day Message

Charitable Donation Strategies: Giving Back with Intention

As financial planners, we often see our clients driven by a desire to provide for their loved ones. But for many, there’s also a deep-seated wish to give back to their community. This month, let’s explore how charitable gifting can be seamlessly woven into your financial plan, allowing you to make a tangible difference.

It Starts With a Plan

Part of our job is to understand what’s the money for? The numbers in brokerage statements and savings accounts have a purpose. They represent weddings, bucket-list trips, home repairs, medical expenses, and everything in between.

The work we do in creating a well-thought-out financial plan gives you the confidence and understanding to know that you have enough.

Once we know that we aren’t going to compromise your standard of living, we can start thinking about helping people and organizations that matter to you. But first, we need a solid plan in place.

Let’s explore some of our favorite strategies that make giving both impactful and financially sound.

Strategies We Love and Why:

  1. Qualified Charitable Distributions (QCDs)
    • What is it? Qualified Charitable Distributions (QCDs) allow individuals aged 70 1/2 or older to donate up to $100,000 per year directly from their Individual Retirement Account (IRA) to a qualified charity. These distributions count toward the annual Required Minimum Distribution (RMD) and are excluded from taxable income, which may offer tax benefits.
    • Why do we love it? It’s easy to accomplish, satisfies the requirement to take funds from a retirement account, reduces your taxable income, and you don’t have to itemize to receive the benefits.
  2. Donor Advised Funds
    • What is it? A Donor Advised Fund (DAF) is a charitable giving vehicle that allows you to make a contribution, receive an immediate tax deduction, and then recommend grants to qualified charities over time. Essentially, you’re creating a charitable investment account. The assets in the DAF can grow tax-free, and you decide when and to which qualified charities you want to distribute the funds.
    • Why do we love it? It’s easy to set up, allows you to group together several years’ worth of donations to get a greater current year tax benefit, and allows you to retain control over when to disperse the funds to your charity of choice.
  3. Gifting Appreciated Stock
    • What is it? Donating appreciated stock directly to a qualified charity is a tax-smart giving strategy that allows you to avoid paying capital gains tax on the stock’s increase in value, while also potentially providing an income tax deduction for its fair market value on the date of donation. This dual benefit means more of your gift goes to the cause you care about, rather than being diminished by taxes.
    • Why do we love it? It’s easy to set up, you can avoid the capital gains taxes, and more money ends up going to the charity of your choice.
  4. Leaving a Bequest in Your Estate
    • What is it? A charitable bequest is a gift made to a non-profit organization through your will or living trust, which takes effect after your passing. It’s a popular and flexible way to leave a lasting legacy, allowing you to designate a specific dollar amount, a percentage of your estate, or even particular assets to support a cause you care about. A significant benefit of a charitable bequest is that it can reduce your taxable estate, as the value of the gift is generally deductible for estate tax purposes, potentially lessening the tax burden on your heirs.
    • Why do we love it? It’s easy to accomplish in a will or trust, it can be modified over time, it has the potential to reduce estate taxes when you pass, and you don’t have to give away any assets in the present.

These strategies remain our favorites for the ease of implementation, the ability to retain control, and the ability to modify & adjust over time. Please feel free to reach out with any questions. Next month we’ll cover strategies for gifting to family members.

Market Update 

As of May 28, 2025*

  • S&P 500 is up 0.66% YTD
  • Dow Jones Industrial Average is down -0.37% YTD 

Please keep in mind that while the S&P 500 and Dow Jones Industrial Average provide insight into a segment of the market, individual portfolio returns will vary due to diversified asset allocations designed to balance risk and opportunity across different asset classes.

*Year-to-date performance data provided by S&P Global and reflects the total return of the S&P 500 and Dow Jones Industrial Average indices.

Memorial Day Message

As we return from the Memorial Day holiday, let’s carry forward the true meaning of this important observance. It’s a day dedicated to honoring the brave men and women who made the ultimate sacrifice in service to our country, defending the freedoms we hold so dear.

Their courage, dedication, and selflessness ensure our liberties. This year, we want to share a powerful story of one such hero, Charles Keating IV, a Navy SEAL who was killed in action in Iraq in 2016. Charlie was truly a unique individual, known for his infectious personality and the remarkable number of close friends he made throughout his life. His life and sacrifice embody the profound commitment of those who serve.

Please take a moment to watch the accompanying video, which tells Charlie’s story.