Maximizing Impact: Charitable Giving Strategies for High-Net-Worth Individuals

Giving Strategically

Philanthropy is a deeply personal endeavor. At Meridian, we believe strategic planning can amplify both your charitable impact and your financial benefits.

Donor-Advised Funds (DAFs)

A donor-advised fund allows you to:

• Make a charitable contribution and receive an immediate tax deduction
• Invest the funds for tax-free growth
• Distribute grants to qualified charities over time
• Maintain advisory privileges over the distribution of funds

Best for: Clients who want flexibility in their giving timeline or who wish to “bunch” contributions for tax optimization.

Qualified Charitable Distributions (QCDs)

If you are over 70½ and have an IRA, QCDs allow you to:

• Distribute up to $105,000 directly from your IRA to qualified charities
• Exclude the distribution from taxable income
• Satisfy your required minimum distribution (if applicable)
• Avoid the AGI increase that a normal distribution would cause

Best for: Clients who are charitably inclined and want to minimize the tax impact of IRA distributions.

Appreciated Securities

Donating appreciated securities (stocks, bonds, mutual funds) instead of cash provides a double tax benefit:

• You receive a deduction for the full fair market value
• You avoid paying capital gains tax on the appreciation
• The charity receives the full value of the security

Best for: Clients with significant unrealized gains in taxable accounts.

Charitable Remainder Trusts (CRTs)

A CRT provides:

• An income stream to you for life or a term of years
• A partial charitable income tax deduction at the time of contribution
• Estate tax reduction as the trust assets are removed from your estate
• The remainder passes to your designated charity

Best for: Clients seeking income in retirement while supporting charitable causes.

Private Foundations

For clients with significant philanthropic goals, a private foundation offers:

• Complete control over grant-making decisions
• The ability to involve family members in philanthropic activities
• A lasting legacy vehicle for multi-generational giving
• Employment of family members (with reasonable compensation)

Best for: Clients planning to give $1 million or more over time who want maximum control and family involvement.

Tax Planning Integration

We coordinate charitable giving strategies with your overall tax plan:

• Bunching contributions in high-income years
• Timing gifts of appreciated securities for maximum tax benefit
• Coordinating with estate planning to maximize the impact of charitable bequests
• Annual giving plan development aligned with your financial goals

Consult with your tax advisor to determine which strategies are most appropriate for your specific situation.