Charitable Giving Tax Deduction: A Path to Meaningful Impact for High-Net-Worth Families

Philanthropy may offer an opportunity for high-net-worth families to leave a legacy that goes beyond financial success. Through thoughtful charitable giving, families can align their financial strategies with their core values, potentially benefiting from significant tax advantages*, and foster a legacy of generosity that inspires future generations.

The Potential Tax Benefits* of Charitable Giving

Charitable giving isn’t just about making a difference, it can also potentially provide significant tax deductions for high-net-worth families. When done thoughtfully, these deductions may maximize the impact of your generosity while aligning with your overall financial strategy.  Some common avenues for charitable giving that may offer tax benefits include:

●  Donor-Advised Funds (DAFs): DAFs allow donors to contribute assets, receive immediate tax benefits*, and recommend grants to charities over time. This flexibility can make them a popular choice for high-net-worth families seeking to simplify their giving process.

●  Appreciated Assets Donations: Donating stocks, bonds, or real estate that have appreciated in value could potentially help minimize capital gains taxes while receiving potential tax deductions*.

●  Family Foundations: Establishing a private foundation may allow families to formalize their philanthropic efforts and take advantage of possible tax benefits* while aligning their giving efforts with long-term goals.

Engaging a philanthropic advisor, like those at Bridges Trust, aims to help ensure your giving strategy is both impactful and tax-efficient*. Advisors provide tailored recommendations, from selecting charitable organizations to structuring donations, helping to fulfill your family’s values and goals .

Beyond Tax Benefits: The Heart of Philanthropy

While the financial benefits of charitable giving are important, the emotional and social rewards could be invaluable, and this is the perfect time of year to rethink how you may maximize your impact. As Matt Boyd, Bridges Trust Vice President of Philanthropy, shares: “Giving Tuesday invites us to reflect on the power of collective generosity and the lasting impact we can create when we come together to support the causes that matter most.”

For families of significant wealth, philanthropy can be a way to instill values of gratitude, empathy, and community involvement across generations. It’s not just about giving money—it’s also about creating a legacy of purpose and impact.

Leaving a Legacy Through Giving

Philanthropy can be a unifying act, bringing families together to reflect on their values and help create a legacy that can resonate far beyond their lifetimes. As we embrace the spirit of Giving Season, consider how your family’s charitable giving may transform lives while offering financial benefits.

At Bridges Trust, we are here to guide our clients throughout the giving process, from identifying charitable opportunities to helping develop potential tax-efficient strategies*.  Whether you choose to establish a family foundation, contribute to a donor-advised fund, or donate appreciated assets, your philanthropy could create a ripple effect of generosity and hope.

Ready to start your giving journey? Contact Bridges Trust to learn how we can help you create lasting impact through strategic philanthropy.

*Bridges and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. The ability to claim tax deductions may be subject to certain limitations depending on the donor’s specific tax situation.  You should consult your own tax, legal and accounting advisors before engaging in any transaction.