Maximize Your Impact: Charitable Giving Strategies

by | Aug 17, 2023

charitable giving strategies

Do you want your charity contributions to have an impact that lasts? The use of your riches to support causes and organizations you believe in can be shaped if you are a high-net-worth individual. When done thoughtfully, it is a tremendously gratifying experience. You may optimize your influence by carefully considering and planning. 

Determine your goals

Start by determining your objectives for giving and the causes you want to utilize your resources to help. Other than writing checks, you might want to look into other ways you might utilize your money to help others. You might also think about how long-term investments like endowments can assist organizations in achieving their goals and missions.

Find ways to reach these goals

Once you’ve established your charitable goals, it’s time to determine the best ways to reach them. There are a variety of charitable giving strategies available that will enable you to make a lasting impact with your resources.:

  1. Direct Giving – Direct giving to a nonprofit or philanthropic organization is one strategy. Although in-kind gifts like stock, real estate, or other assets are also acceptable, financial donations are the most typical way to accomplish this. 
  2. Donor Advised Funds (DAF) – A DAF enables you to make a donation while giving you the freedom to distribute the money to charity over time. DAFs are well-liked because they let you donate to several different causes at once. Your DAF can also be used as a means of investing and gaining tax advantages from your charitable endeavors.
  3.  Charitable Remainder Trust (CRT) –A CRT enables you to make a one-time gift while dispensing income to noncharitable beneficiaries from the trust for a specific length of time. At the end of that term, whatever remains in the trust is distributed to designated charities and non-profit organizations.
  4. Charitable Lead Trust (CLT) – A CLT is similar to a CRT except that it pays out to the designated charities and organizations first, then to noncharitable beneficiaries. It is a great way to make an impact with your giving while diverting a large portion of potential estate taxes from your heirs. 
  5. Private Foundations – You can establish a foundation with assets you provide or as a will’s beneficiary. Establishing a private foundation gives you control over how your assets are used and can be a wonderful way to engage your family in charitable endeavors. 
  6. Social Impact Investing: This strategy combines philanthropic giving with investment tactics that provide profits for investors as well as quantifiable social and environmental benefits. These kinds of investments give donors the opportunity to make a big, long-lasting social impact while also earning returns on their initial investments over time.

No matter which strategy you choose, make sure to do your homework and get professional advice to get the most out of your charity-giving efforts. With careful thinking and preparation, you can gain financially from your gift while simultaneously making a significant impact on the issues that are important to you. 

Work with us

Contribute to bringing about much-needed change in the world! At Kreitler Financial, our knowledgeable financial advisor can make it easier to decide which strategy works best for your situation. We are proud to work with clients who have achieved a great level of success and who are committed to long-term relationships. Our clients have investable wealth from $2MM to more than $100MM and value our expertise and holistic approach to wealth management.

If you are interested in charitable giving strategies for wealth management, talk to our financial advisors today!