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How Should I Give Some Of My Assets to Charity?

How should you give some of your assets to charity? We go over some options to help you find the right solution for you.

Full Transcript:

Hello and welcome to Arista Advice! Question of the week is: "Paul, how should I give some of my assets to charity?" Excellent question! It's always good to be philanthropic whether at the grocery store, at the airport, or to other charities that you feel philanthropic about. I've always seen great individuals and clients give, and the charities win, the clients win. It's a good win all around. There are several strategies for charitable giving. Each of which has its benefits and has different situations, and you just need to take them in consideration. 

One powerful strategy is a donor-advised fund or a DAF. DAFs have been around for a long time, and they'll continue to be around for a long time. They have been in the paper for negative purposes, but they're still really powerful and a great strategy to consider. In a donor-advised fund, you can donate a variety of assets, such as cash, public traded stocks, securities, and even privately held assets. Rather than sell the securities, trigger a long-term or short-term capital gains tax, you can transfer these assets directly to the donor-advised fund. You receive an immediate tax deduction in the year that you contributed to the fund. The assets can continue to grow tax-free until the donor gifts those assets to their favorite charity. This strategy allows the donor to pay less in taxes and gift more to charity. 

As you can see in this chart, this is how a donor-advised fund works. This is another way to give to charities in a very strategic, calculated way. Depending upon your needs, we can help you find the best strategy for a charitable giving and legacy planning. 

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