What it is
Charitable giving for high-net-worth donors is the practice of directing larger gifts to causes you care about in a way that fits your wider financial picture. It often goes beyond writing checks. Gifts may come from appreciated assets, business interests, retirement accounts or real estate, and they may support many organizations at once.
A coordinated giving strategy means your gifts are planned together instead of one at a time. The aim is to line up your values, your cash flow, your family goals and the timing of your gifts so they work as a whole.
Tax treatment is usually part of the conversation, but it is rarely the only part. Donors also think about legacy, family involvement, privacy and how to make sure their gifts do real good over time.
How it’s traditionally been approached
Many donors have used donor-advised funds as a central place to make gifts. You contribute to the fund, and then recommend grants to charities over time. This can make it simpler to support many organizations and keep records in one place.
Some families have set up private foundations to keep more control over how funds are invested and granted, and to involve younger generations in giving. Foundations generally come with more rules, administration and ongoing responsibilities than other approaches.
Others use charitable bunching, which means combining several years of giving into one year, often to pass certain tax thresholds in that year. Rules and thresholds change and differ by person, so donors typically review any approach with their own tax professional.
How the right planner may help
The right planner may help you see all of your giving in one place: current gifts, long-term goals, the assets you might give and the charities you support. A planner who works well with CPAs and estate planning attorneys may help make sure the strategy fits your whole plan. They do not replace those professionals.
A first visit is usually a conversation. Expect questions about your values, the causes you care about, your family, your timeline and the kinds of assets you hold. You may be asked to share recent tax returns or a list of current charitable commitments so the planner can understand your situation.
Good questions to ask include: How are you paid, and do you have any conflicts of interest? How do you work with my CPA and attorney? What are the trade-offs between different giving tools for someone in my situation? How would we review the plan when laws or my circumstances change? What would you want me to confirm with my tax professional before acting?
The bigger picture
Giving can bring a deep sense of meaning, and it can also bring pressure. Large decisions about where money goes, how much to give and what to leave to family can stir up worry, guilt or disagreement at home. A clear, coordinated plan may help you feel calmer and more confident that your gifts reflect what matters to you.
Taking time to talk through your goals with the people close to you, and with trusted professionals, may support your peace of mind. If the stress of money decisions starts to affect your wellbeing, Providers.plus may help you find additional support. There is no single right way to give, and every approach can be a good fit for someone.
Giving is also a long-term practice, not a single event. Many donors find that checking in on their goals from time to time helps their plan stay in step with their life.
Keep in mind
- Tax laws and charitable-giving rules change by year and vary by situation, so confirm current figures and suitability with your own CPA or estate planning attorney before acting.
- No planner can promise a particular tax result, deduction amount or outcome from any giving strategy.
- Donor-advised funds, private foundations and bunching each have different features, costs and responsibilities, and none is right for everyone.
- Charitable Financial Planning is an independent directory and does not give tax, legal, investment or financial advice.
Planners who often help
Get matched privatelyFrequently asked questions
What is a charitable giving strategy for high-net-worth donors?
A charitable giving strategy for high-net-worth donors is a coordinated plan for how, when and what to give to the charities you care about. It often considers the type of assets given, the timing of gifts, your family goals and your tax situation. A planner may help organize these pieces, and your CPA or attorney can confirm what fits your situation.
How can I give to several charities in a coordinated way?
Many donors use a single vehicle, such as a donor-advised fund, to recommend gifts to several charities over time. Others give directly or through a foundation. The best choice depends on your goals, your assets and how much involvement you want, so it helps to talk it through with a planner and your tax professional.
What is the difference between a donor-advised fund and a private foundation?
A donor-advised fund is generally simpler to set up and run, while a private foundation usually offers more control but comes with more rules and administrative work. Costs, privacy and tax treatment can differ between the two. Ask your CPA or estate planning attorney which may suit you.
What is charitable bunching?
Charitable bunching means combining several years of planned gifts into a single year instead of spreading them out evenly. Donors sometimes do this so their giving may have a different tax effect in that year. Whether it makes sense depends on current rules and your own situation, so confirm with your CPA first.
Can I give appreciated assets instead of cash?
Many donors do give appreciated assets, such as securities or other property, instead of cash. The tax treatment and the paperwork can vary by asset type and by year. Always check current rules and your specific situation with your CPA or estate planning attorney before making a gift.
How do I find a planner who understands charitable giving?
Look for an independent planner who has experience with donors like you, explains how they are paid and is willing to work with your CPA and attorney. Ask about the giving tools they have worked with and the trade-offs of each. A directory like this one can help you start your search, but you should always do your own review.
Educational resource. Charitable Financial Planning shares general information and connects people with independent planners. It is not professional advice. Talk with a qualified professional about your own situation.