Planning for Philanthropy and What It Can Do for Everyone

Abstract

Effective charitable giving involves far more than just donating money. There are tax, legal, and personal considerations that need to be assessed. There are five key elements to charitable gifting for every donor: establishing a budget; becoming familiar with the basic income tax rules; selecting the most tax-efficient assets to give; choosing how to make the gift; and making an impact. The authors consider the tax rules surrounding philanthropy and consider techniques that include donating appreciated assets as well as using donor-advised funds, gift annuities, charitable remainder trusts, charitable lead trusts, and private foundations. The authors also consider how donors can ensure that their funds are going to organizations that will use their gifts most effectively while also creating a family legacy.