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.



Most Recent Episodes

Financial Advisors React to Money Advice from ChatGPT

Will ChatGPT be your new financial advisor? In this react episode, we’ll break down some money advice from ChatGPT and compare it to our own thoughts and opinions. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know...

Financial Planning 101 (By Age) 2023 Edition

Throughout every decade, there are different areas of your financial life that come in and out of focus. In this episode, we'll discuss what you need to focus on by age, pitfalls to watch out for, and how to know you're doing it right. In this episode, you'll learn:...

Is the 2023 Housing Crash Around the Corner?

Housing prices skyrocketed after the pandemic to all-time highs, and mortgage rates have more than doubled since 2020. Homes are harder to purchase for more Americans, which means it’s more important than ever to make sure you are ready to buy before purchasing. In...

Watch This Before Rebalancing Your Investment Portfolio!

85% of Americans don’t rebalance their 401(k). Are they making a huge mistake? In this episode, we’ll discuss the “why” behind rebalancing, how to do it, and the data on whether or not rebalancing can increase your return. In this episode, you’ll learn: What...

Don’t Make This HUGE 401(k) Mistake!

Americans are making a HUGE mistake in their 401(k) that could cost them thousands by retirement. We’ll talk about why this is happening and how you can avoid making the same mistake in this Q&A episode! For more information on how to make the most out of every...

Alex Hormozi’s Top Money Advice! (Financial Advisors React)

In this episode, we react to Alex Hormozi's financial advice. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know Your Number Course! Check out our Net Worth Tool! Get FREE downloads full of financial advice from...

Everything You Need to Know About Finances in Your 20s

In this episode, we discuss everything you need to know about finances in your twenties. In this episode, you’ll learn: The top financial advice for your twenties How to start building wealth and the steps you should take Enjoy the Show? Sign up for the Financial...

The Most Valuable Asset in Building Wealth!

This episode will show you how to maximize the most valuable resource you have - starting right at this moment. What is it, you may ask? It’s TIME. If you give your money time to grow, you’ll be amazed at how much your dollars can become - it’s incredible! How wild is...