Charitable Giving

heart - donating concept

Charitable Giving Options

Giving back is deeply personal. For some, it’s about supporting causes close to their heart. For others, it’s about leaving a lasting legacy for their community or ensuring future generations benefit from institutions like the arts, sciences, or education. Whatever your reason, charitable giving can create meaningful impact while also providing financial advantages.

 

Why Charitable Giving Matters

Presently, the tax code offers incentives for gifting of one’s assets or incomes. Tax deductions are given for current contributions and, for estate owners, charitable gifts can reduce the size of the estate to help minimize estate taxes.

Often times, an individual will designate a charitable beneficiary in their will to benefit the organization after the individual dies. By using charitable gifting techniques, a donor may be able to benefit the charity while living without having to sacrifice the income that an asset can generate. Understanding how properly structured charitable gifts can provide current benefits for both the donor and the charity could be important for the charitably inclined.

Charitable Remainder Trust

A Charitable Remainder Trust allows you to transfer assets into a trust, retain income during your lifetime, and designate the remainder for a charitable organization. Properly structured, a CRT can qualify for a current tax deduction.

  • Unitrust: Provides income based on a percentage of the trust’s annually revalued assets.
  • Annuity Trust: Pays a fixed annual income regardless of market performance.
  • Pooled Income Fund: Combines donations from multiple donors into a fund managed by the charity, with income distributions proportionate to each donor’s contribution.

Charitable Lead Trust

Sometimes called an Income Trust, a CLT provides income to the charity for a specific time period, after which the remaining assets pass back to the donor or their heirs. This structure allows donors to support charities now while retaining long-term control of their wealth.

Creating a Giving Plan That Lasts

Charitable giving is more than a financial transaction, it’s a way to align your resources with your values. With thoughtful planning, you can:

  • Support the causes you care about most.
  • Reduce income and estate taxes.
  • Maintain an income stream while giving.
  • Create a lasting legacy for your family and community.

Our Approach to Charitable Planning

At Alpha 3 Wealth Management, we help you explore charitable giving strategies that fit into your overall financial plan and align to your goals. By integrating tax planning, retirement planning, and wealth transfer strategies, we ensure your giving is impactful for both you and the organizations you support.

Start Planning Your Legacy Today

Charitable planning can be complex, with unique tax considerations and legal requirements. Our financial professionals can help you design a strategy that maximizes your impact while protecting your financial future.

For more information of charitable planning, please contact us today.