How to Pick the Best Charitable Giving Strategy!

January 28, 2023


Are you looking for ways to give charitably using your invested assets? Giving to charity can not only make you feel good, but it can also be done in a tax-efficient manner. One way to do this is by using appreciated holdings.

Timing is important when it comes to giving charitably. Right now, we are in the middle of a bear market, which means that there are not a lot of appreciated assets. However, this can also create a huge opportunity for you. When the market hits a recovery, you could be sitting on an appreciated holding with a 40% embedded gain.

One way to do this is by using charitable gift funds. Not only can you give appreciated stocks, but you can also give appreciated mutual funds, ETS, and more. Charitable gift funds offered by Fidelity and Charles Schwab are great options.

When you have appreciated holdings and a charitable gift fund, you can maximize your charitable giving by using a donor-advised fund. This allows you to give appreciated assets to the fund and then take an immediate tax deduction. You can then advise the fund on how to distribute the assets to your chosen charities over time.

Another way to give charitably using your invested assets is through charitable trusts. This can be done through a charitable remainder trust or a charitable lead trust. These trusts can provide you with income for a certain period of time, and then the remaining assets will be distributed to your chosen charity.

It’s important to remember that these strategies can be complex and should be discussed with a financial advisor or tax professional. However, by understanding these tools and tricks, you can maximize your charitable giving and make a positive impact on the world.



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