Make the Most of Your Philanthropic Gifts
For many of our clients, the causes near and dear to their heart factor into their financial plans. By understanding what's most important to you, we can help you leverage the right vehicles at the appropriate times to make the most powerful impact and help you reach your charitable giving goals.
In short, there are ways to strategically give back that maximizes the impact and allows you to support more with a legacy today, and in the future.
From donor advised funds and reducing your taxable income with strategic giving, we're ready to craft a plan that rewards your generous spirit.
Pre-Retirement
As philanthropic goals arise, our team will evaluate your overall financial plan and find areas for tax-advantaged charitable giving opportunities.
Strategies like donor advised funds are often-overlooked, but a great fit to maximize the impact of giving during your working years and beyond. We'll work with your accountants to execute, but get ahead of things to set a multi-year giving strategy when giving back is a key goal.
If your advisor avoids conversations about giving back, let's chat.
After Retirement
Once our clients reach retirement and begin taking required minimum distributions, we often recommend charitable giving strategies like Qualified Charitable Distributions to meet RMD requirements while offsetting the associated tax burden.
Additionally this is a great time to evaluate charitable remainder trusts or other longer-term legacy solutions to support the causes most important to you for the long-haul.
For Your Estate
Charitable giving strategies can also make a significant tax impact at the time of your passing.
By leaving money to charity, the donated amount may be deduced from your total taxable estate, lessening the burden on your family while supporting a cause you are passionate about.
We're proud to say we go beyond the basics here and don't shy away from complex trust strategies if they're the right fit for you.
Charitable Giving
Giving More to Charity, Not Taxes
A client had substantial taxable income in his final year before retirement. He was retiring in his early 60s and couldn’t yet make charitable gifts from his IRA to take advantage of the tax breaks.
He was looking for another way to reduce his taxable income while supporting his charitable goals.
His income for the year far exceeded the threshold of the highest tax bracket, meaning he would be subject to a 37% tax rate, as well as any capital gains associated with keeping excess funds in a brokerage account.
The Plancorp team advised the client to front-load his next several years of charitable giving into a donor-advised fund, which offset his taxable income significantly. The funds are also growing tax-free and will stay tax-free when they are donated.
