Charitable giving, in the context of financial advisors is a wealth management strategy that allows investors to donate assets—including appreciated securities, real estate, and other holdings—to qualified charitable organizations while optimizing their investment portfolio and tax efficiency.
Investors can donate appreciated securities directly from their portfolios to avoid capital gains taxes that would otherwise be triggered by selling. This approach allows donors to contribute at full market value while eliminating embedded gains—a particularly valuable strategy for long-held positions or highly appreciated stocks.
A popular vehicle for portfolio-focused donors, DAFs allow investors to contribute appreciated assets, receive an immediate tax deduction, and distribute to charities over time. The funds are invested and can grow tax-free, providing a way to build charitable capital while maintaining investment flexibility.
These vehicles enable investors to transfer appreciated securities into a trust, receive income distributions during their lifetime, and have remaining assets go to charity. This strategy creates liquidity for concentrated stock positions while generating ongoing income and tax benefits.
Charitable giving can serve as a portfolio management tool, allowing investors to donate underperforming or unwanted holdings while maintaining their target asset allocation—without incurring capital gains on the disposition.
For investors managing significant portfolios, charitable giving strategies integrate with broader estate planning, allowing them to reduce taxable estates while supporting causes aligned with their values.
As firms try to bring in more young people, they should try to demonstrate the factors that make this career so rewarding and fulfilling
Fidelity, Vanguard and Schwab all seeing increases in grants through DAF accounts
The Goldman donor-advised fund is the fastest-growing charity in the U.S.
The Goldman donor-advised fund is the fastest-growing charity in the U.S.
The Goldman donor-advised fund is the fastest-growing charity in the U.S.
Taxpayers can either accelerate or defer deductible expenses so that more of them happen in one tax year
Specialty in charitable giving ideal when many clients have no heirs.
You still have time to set up accounts before year-end, but some contribution deadlines have passed.
Clients still have time to set up accounts before year-end, but some contribution deadlines have passed.
5 things to do in 2017, assuming tax-reform legislation becomes law
The so-called FIFO provision could also lead to yet-unrealized planning opportunities for advisers.
Financial advisers should have this crucial conversation with next-gen clients.
This month's edition kicks off with the big news that Lincoln Financial has decided to build its AdviceNext adviser workstation on Fidelity's Wealthscape.
The FIFO mandate favors investment companies, not real people, and should be removed.
The FIFO mandate favors investment companies, not clients, and should be removed.
