Learn how charitable giving can reflect your values while supporting long-term planning across taxes, estate strategy, and broader financial priorities.

Aligning Financial Plans with Charitable Goals

Charitable giving can reflect deeply held values, while also playing a strategic role in tax planning, estate considerations, and long-term financial priorities.

Here are some of the most widely used strategies that can support a financially coordinated approach to giving:

• Making direct gifts in cash is the simplest way to give but may leave the advantages of other gifting methods like tax efficiency and gift maximization on the table
• Contributing appreciated assets can reduce your own capital gain exposure and maximize what your charity receives since qualified organizations do not realize these taxes from received gifts.
• Establishing a donor-advised fund for long-term, flexible grant-making
• Using qualified charitable distributions (QCDs) from IRAs
• Structuring gifts through charitable remainder or lead trusts
• Creating a private foundation for large gifts may allow increased grant making flexibility for specific causes and provides an opportunity to involve future generations in philanthropic endeavors
• Incorporating giving into estate planning or business succession strategies

Defining Your Charitable Objectives

Before selecting a giving vehicle, it helps to clarify what you’re hoping to achieve. For example:

• Are you giving for tax purposes, legacy, or both?
• Do you want to support causes during your lifetime or through your estate?
• Should your family be involved in future decisions?

Answering these questions can help shape how your giving is structured—and whether it’s better suited to simple tools like donor-advised funds or more complex arrangements like private foundations or trusts.

Strategic Giving Vehicles

Different strategies carry different tax, control, and timing implications. Here’s how some of the most commonly used giving tools work:

Donor-Advised Funds (DAFs)

• Offer immediate tax deduction for contributions
• Allow you to make grants to qualified charities over time
• Can be funded with cash, appreciated securities, or other assets

Charitable Remainder Trusts (CRTs)

• Pay income to the donor or another beneficiary for life or a term of years
• Remainder passes to a designated charity
• Can support long-term income planning and philanthropy simultaneously

Charitable Lead Trusts (CLTs)

• Provide income to a charity for a set period
• After the term, the remaining assets go to heirs or other beneficiaries
• Can be useful for reducing potential estate tax exposure

Qualified Charitable Distributions (QCDs)

• Available to individuals age 70½ and older
• Allow direct transfers from IRAs to eligible charities
• May reduce taxable income and help satisfy required minimum distributions (RMDs)

Gifting Appreciated Assets

• Donating stock, real estate, or other appreciated assets may avoid capital gains taxes
• Other complex assets like Private Business Interests, Art, or Cryptocurrency may also be considered for charitable gifting purposes

• Can be utilized in coordination with many of the other gifting strategies

• These types of assets can be given directly to charitable vehicles without liquidating and incurring a tax hit as an individual

Tax Considerations

Charitable planning can be a useful tool in reducing income tax exposure, offsetting gains from a liquidity event, or supporting estate planning strategies. Timing matters, especially in high-income years or when approaching a large transaction, such as selling a business.

Some considerations to keep in mind:

• Deductions for charitable contributions may be subject to adjusted gross income (AGI) limits
• Carryforward rules allow deductions to be used over multiple years
• The structure of your gift can affect its deductibility and long-term impact

Working with a financial advisor, CPA, and estate attorney can help coordinate these details in a way that aligns with your giving intentions and overall plan.

Integrating Charitable Goals into Broader Planning

Charitable giving doesn’t exist in a vacuum—it often intersects with retirement, tax, and estate decisions. For example:

• A business owner planning an exit may benefit from transferring equity to a charitable trust before a sale
• Gifting appreciated assets during a high-income year may help offset taxable gains
• Integrating philanthropy into financial planning can help clarify how much to give now vs. later

Family Involvement and Generational Planning

Charitable giving can also be a way to engage family members across generations.

Some families create giving plans or donor-advised fund committees that involve adult children in researching and recommending grants. Others use family foundations to educate future generations about shared values and long-term planning.

Discussing charitable intent can:

• Strengthen communication around wealth and responsibility
• Provide opportunities for younger family members to participate in meaningful decision-making
• Help pass down not just assets, but a legacy of generosity

Pitfalls to Avoid

Even well-intentioned giving can lead to complications if not coordinated properly. Common issues include:

• Giving large cash gifts when appreciated assets may offer greater efficiency
• Failing to document charitable intent clearly in estate or trust documents
• Creating a foundation without the resources to manage it effectively
• Not updating giving plans as tax laws or personal goals change

A structured approach can help reduce missed opportunities and support a more coordinated strategy.

Bringing It All Together

At EP Wealth, we work with clients to incorporate giving into long-term strategies that reflect their goals and priorities. Whether you're already supporting causes you care about or just beginning to think through your philanthropic vision, we can help you explore what’s possible.

To take the next step in aligning your financial plan with your charitable goals, reach out to your EP Wealth advisor or contact a high net worth advisor.

DISCLOSURES

• EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability
• Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
• Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.  
• Hiring a qualified a high net worth advisor and/or financial planner does not guarantee investment success and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied results or projections being represented here will be met or sustained.
• The need for a high net worth advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.
• The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult with a professional tax advisor who has been provided with all pertinent facts relevant to your situation. EP Wealth Advisors is not in the business of providing legal or tax advice. Please consult with a CPA, tax professional, and/or attorney regarding your specific situation.
• All investment strategies have the potential for profit or loss. Different types of investments and investment strategies involve varying degrees of risk, and there can be no assurance that any specific investment strategy will be suitable or profitable for a client’s portfolio. The risk of loss can never be eliminated even if working with a professional.
• An estate plan is a helpful tool that can assist individuals in managing and arranging affairs in the event of death or incapacity. However, the scope and extent of the plan varies depending on the unique circumstances and desires of the individual client. It is for this reason, that the analysis encompassed herein is not intended to be comprehensive in nature nor should it be interpreted as legal advice. Please consult a legal professional to determine the extent, scope, and the drafting and creation of the appropriate estate documents. EP Wealth Advisors is not in the business of providing legal advice or preparing legal documents. Our review is limited to and in association with Financial Planning only.
• Laws vary by state. The information presented herein is intended to be general in nature and may not apply to your state of domicile. Please consult local legal counsel to determine the best practices for your state.
• Please consult with a CPA, tax professional, and/or attorney regarding your specific situation before implementing any of the strategies referenced directly or indirectly herein.