For many individuals and families, philanthropy is about more than generosity; it’s about making a meaningful, lasting impact. But effective charitable giving doesn’t happen by accident. Like any financial goal, it benefits from a thoughtful strategy that aligns with your values, tax situation, and long-term legacy plans.
A strategic approach to philanthropy allows you to give more intentionally, maximize the impact of your donations, and often gain financial benefits along the way. Below are a few key strategies to consider when building a more effective charitable giving plan.
Start with a Strategic Giving Plan
Before choosing specific tools, it’s important to clarify your goals. What causes matter most to you? Do you want to give consistently over time, respond to opportunities as they arise, or create a lasting legacy? Planning ahead allows you to integrate philanthropy into your broader financial picture instead of treating it as an afterthought.
We’ve shared practical ways to be more intentional in our blog 5 Ways to Maximize Your Holiday Donations, and many of those principles apply year-round, not just during the holidays.
The Benefits of Donor-Advised Funds (DAFs)
One of the most flexible and efficient tools for charitable giving is a donor-advised fund (DAF). A DAF allows you to make a charitable contribution, receive an immediate tax deduction, and then decide later when and where to distribute the funds.
One major advantage is growth potential. Assets contributed to a DAF can be invested, meaning you may ultimately give more to charity than your original contribution. This flexibility allows donors to respond to changing charitable priorities while keeping their long-term giving goals intact.
DAFs also simplify record-keeping and administration. Instead of tracking multiple donations and receipts, everything is consolidated in one place, making tax time easier and more efficient.
Using Charitable Remainder Trusts (CRTs) for Income and Legacy Planning
For those looking to combine philanthropy with income planning and tax efficiency, charitable remainder trusts (CRTs) can be a powerful option. A CRT allows you to donate assets to a trust, receive income for a set period (or for life), and ultimately leave the remaining assets to a charity of your choice.
CRTs can provide several benefits, including potential tax advantages, income generation, and the opportunity to support causes you care about long after your lifetime. They are often used as part of broader legacy planning strategies, especially for individuals with highly appreciated assets.
Because CRTs are complex, they should always be considered in coordination with experienced professionals.
Work with the Right Team
Philanthropic strategies often intersect with tax planning, estate planning, and investment management. That’s why it’s important to have conversations with a financial advisor and a qualified tax professional. Exploring your options doesn’t mean you have to act — it simply gives you clarity and confidence in your choices.
In fact, understanding how taxes affect your broader financial picture can open the door to smarter giving decisions. Our blog What You May Be Missing by Getting a Large Refund explores how proactive tax planning can create more opportunities — including charitable ones.
At Anchor Wealth Management, we regularly collaborate with local CPAs and attorneys to help clients align their philanthropic goals with their financial and legacy plans.
Thoughtful philanthropy is about more than writing a check. With the right strategy, you can give intentionally, support the causes you care about, and create a lasting impact — all while staying aligned with your overall financial goals.
By Chris Perry, Wealth Advisor