The “Treat” of Planned Giving
Key insights
- Planned giving is one of the most tax-efficient and emotionally rewarding forms of generosity.
- It allows you to create a lasting legacy for both your family and the causes you care about.
- With proper planning, you can turn charitable intent into long-term impact without spooking your financial future.
What is planned giving?
Planned giving is the strategy of setting aside future gifts to charity typically through your estate, trusts, retirement accounts, or insurance policies. It’s not just for the ultra-wealthy or large institutions. With the right tools, anyone can use planned giving to maximize their impact while preserving family wealth.
The “treat” here? You may be able to give more than you ever thought possible often while receiving tax benefits today.
Planned Giving Tool | How It Works | Best For |
Bequests in your Will | Designate a portion of your estate to a charity | Simple, flexible legacy gifts |
Charitable Remainder Trusts (CRTs) | Provide income for you or heirs, then leave the remainder to charity | Blending legacy giving with income planning |
Donor-Advised Funds (DAFs) | Contribute now, decide on grants later | Gifting appreciated assets, timing tax deductions |
IRA Qualified Charitable Distributions (QCDs) | Direct a portion of your RMD to a qualified charity (if 70½+) | Reducing taxable income in retirement |
Gifting Life Insurance | Designate a nonprofit as a policy beneficiary | Creating a large gift at low cost |
Why planned giving matters—now more than ever
- Tax law sunsets approaching: The current estate and gift tax exemptions may be cut in half by 2026 unless Congress acts. Planned giving strategies can help lock in today’s thresholds.
- Rising interest in legacy: Many clients are thinking deeply about what their wealth says about their values. Charitable giving is a powerful way to reflect those priorities.
- Complex wealth calls for structure: Business owners, real estate investors, and high-income professionals may benefit from planned giving strategies that blend philanthropy with income or capital gains mitigation.
A few spooky myths—debunked
Myth: “Planned giving is only for the ultra-wealthy.”
Truth: Anyone with an estate or retirement account can create a charitable legacy.
Myth: “You have to give up access to your money.”
Truth: Tools like donor-advised funds and charitable trusts offer flexibility and control—often with income back to you or your family.
Myth: “My family will lose out.”
Truth: With good planning, you can provide for both your loved ones *and* your values.
Final Thoughts
While Halloween brings candy and costumes, the real “treat” is using your financial plan to leave a lasting impact. Planned giving helps you support causes you care about, reduce your tax burden, and shape your family legacy.
Let us know if you’d like help reviewing your current estate plan or exploring planned giving strategies that align with your values.
Ready to make generosity part of your legacy?
Investment advisory services provides by Avior Wealth Management, LLC, an SEC registered investment adviser d/b/a SC Financial Services Inc. This content is for educational purposes only and is not intended to be an investment recommendation or specific financial advice. You should consult with your financial professional to determine what best suits your investment objectives and risk tolerance.
