Giving Strategies
The Strategies the Wealthy Use
For decades, billionaires and major institutions have used sophisticated charitable giving strategies to reduce taxes, build wealth, and amplify their impact. These tools are only complicated because they’ve been locked behind institutional walls and seven-figure minimums.
Whether you’re a professional earning $350,000+ or a charity ready to accept transformational gifts, these strategies are available to you.
Bargain Sales
Sell an asset to charity for less than its fair market value. The difference between the sale price and the fair market value is treated as a charitable contribution. You receive some cash from the sale, recognize a charitable deduction for the gift portion, and only pay capital gains tax on the portion sold. This strategy provides liquidity while creating tax benefits and charitable impact—particularly useful when you need some proceeds from an appreciated asset but don’t require full value.
Charitable Gift Annuities
Make a charitable gift and receive fixed payments for life in return. The charity invests your contribution and pays you a set amount annually, based on your age at the time of the gift. You receive an immediate income tax deduction for the charitable portion, a portion of each payment is tax-free, and you enjoy the security of guaranteed income backed by the charity’s assets. Gift annuities offer simplicity and predictability for donors who want to support a specific organization while securing retirement income.
Charitable Gift Financing
Borrow funds to make a major charitable gift, use three-quarters of your tax savings to fund life insurance as loan collateral, and keep the remaining quarter as cash. The loan requires no payments during your lifetime and is repaid when the insurance policy pays out. You reduce your current tax burden substantially, direct hundreds of thousands or millions to charity, and keep cash in your pocket. This strategy turns giving into a wealth-building opportunity while creating significant charitable impact.
Charitable Lead Trusts
A charitable lead trust makes payments to charity for a specified term, then returns the remaining assets to you or your heirs. You receive an immediate tax deduction based on the present value of the charitable payments, reduce or eliminate gift and estate taxes, and transfer wealth to the next generation at reduced tax cost. This strategy is especially effective during low interest rate environments and for individuals who want to support charity now while preserving assets for family later.
Charitable Remainder Trusts
Transfer appreciated assets into an irrevocable trust that pays you (or your designated beneficiaries) income for life or a set term of years. You receive an immediate income tax deduction, eliminate capital gains taxes on the donated assets, and convert highly appreciated property into a reliable income stream. When the trust term ends, the remaining assets pass to your chosen charity. This strategy works particularly well for individuals holding appreciated stock, real estate, or business interests who want to diversify without triggering capital gains taxes.
Deferred Gift Annuities
Similar to a standard charitable gift annuity, but payments begin at a future date you select—often at retirement. You make the gift now, receive an immediate tax deduction, and the charity begins payments years later when you need the income. Because payments are deferred, the annual payout rate is higher than an immediate annuity. This strategy allows younger donors to make meaningful gifts today while building future income streams aligned with retirement plans.
Donation of Nonvoting Stock / Units in Closely-Held Businesses
Donate nonvoting shares or membership units in a family business or closely-held entity to charity. You receive a charitable deduction based on the appraised value, remove the asset from your taxable estate, and support charity without diluting voting control. The charity can hold the interest and receive distributions, or you can arrange to repurchase the interest later, creating tax benefits without permanently reducing ownership. This strategy works for business owners who want significant tax deductions while maintaining operational control.
Endowment & Fund Management
Establish a permanent fund within a charity or community foundation that generates income to support specific charitable purposes. Your contribution is invested, a portion of the earnings is distributed annually to support your designated cause, and the principal remains intact in perpetuity. You create a lasting legacy, receive immediate tax benefits, and ensure ongoing support for causes that matter to you. This strategy appeals to donors who want their charitable impact to continue beyond their lifetime.
Fiscal Sponsorship Programs
Partner with an established public charity that accepts and administers charitable contributions on behalf of projects or initiatives that don’t have their own tax-exempt status. Donors receive immediate tax deductions, projects access funding without forming their own nonprofits, and the fiscal sponsor handles compliance and reporting. This strategy accelerates charitable work by eliminating the time and cost of obtaining separate tax-exempt status. It’s particularly effective for new initiatives, research projects, and community programs.
Gifts of Appreciated Assets
Donate stock, real estate, or other appreciated property directly to charity instead of selling it first. You avoid capital gains taxes entirely, receive a charitable deduction for the full fair market value, and the charity receives the asset without reduction for taxes. This strategy is more tax-efficient than writing a check because you eliminate the capital gains tax and maximize the charitable deduction. It works for any appreciated asset held longer than one year.
Life Insurance Policy Gifts
Donate an existing life insurance policy you no longer need, or purchase a new policy naming charity as the owner and beneficiary. If you donate an existing policy, you receive a tax deduction for the policy’s value and remove it from your taxable estate. If you purchase a new policy, your premium payments are tax-deductible charitable contributions. The charity receives a substantial gift when the policy pays out, often far exceeding the total premiums paid.
Pooled Income Funds
Contribute assets to a pooled fund managed by a charity, receive income based on the fund’s annual earnings, and support the charity when your interest terminates. You receive an immediate income tax deduction, your income fluctuates with fund performance, and you join other donors in a shared investment vehicle. Pooled income funds offer lower entry costs than establishing a private charitable remainder trust and provide professional investment management. This strategy works for donors who want income and charitable impact without the administrative complexity of individual trusts.
Qualified Charitable Distributions
If you’re 70½ or older, you can transfer up to $100,000 annually from your IRA directly to charity. The distribution counts toward your required minimum distribution but is excluded from your taxable income. You satisfy withdrawal requirements, reduce your adjusted gross income, and support causes you care about—all without increasing your tax burden. This strategy is particularly valuable for retirees who don’t need their RMD for living expenses and want to minimize taxation while giving.
Supporting Organizations
Establish a Supporting Organization—a charitable entity that supports one or more public charities. You maintain significant influence over grantmaking and operations, receive immediate tax deductions for contributions, and avoid the excise taxes and distribution requirements that apply to private foundations. Supporting Organizations offer more control than a donor-advised fund and more flexibility than a private foundation. This strategy suits donors who want governance involvement without the regulatory burden of running a private foundation.
Supporting Organizations
For Charities
Most organizations don’t have the infrastructure to administer complex gifts. We provide professional administration and donor education so you can accept transformational gifts you’d otherwise have to turn down.
For Advisors
Financial advisors, CPAs, and estate planning attorneys drive the majority of sophisticated giving transactions. We partner with you to bring these strategies into client relationships—without adding to your workload.