How Strategic Philanthropy Maximizes Impact and Tax Efficiency

As the year draws to a close, many individuals and families begin thinking about giving back. December is not only a season of generosity but also an opportunity to align meaningful charitable decisions with smart financial planning. When approached thoughtfully, strategic philanthropy can amplify your impact while reinforcing your overall wealth strategy.

Why It Matters Now

Year-end giving is more than tradition. Donations made before December 31 can reduce your 2025 taxable income while supporting the causes that matter most to you. For high-net-worth individuals, executives, and families with growing philanthropic goals, timing plays a key role in maximizing benefits.

Given market conditions and policy changes, integrating charitable planning into wealth management is essential for maximizing philanthropic effectiveness and financial outcomes.

Smart Giving Strategies to Consider

1. Donate Appreciated Securities

Gifting publicly traded shares that have increased in value allows you to:

• Eliminate capital gains tax on the appreciated portion

• Receive a charitable tax receipt for the full fair market value

• Support a charity while improving portfolio efficiency

This approach is often more tax-effective than donating cash, especially after a strong market year.

2. Establish a Donor Advised Fund

A donor advised fund allows you to:

• Make a large contribution in 2025

• Receive the tax benefit immediately

• Distribute grants to charities over multiple years

• Maintain flexibility as your philanthropic goals evolve

This structure is well suited for families who want a more organized approach to giving, legacy planning, or a way to involve younger generations.

3. Coordinate Charitable Giving with Portfolio Rebalancing

Year-end is a natural time to review:

• Asset allocation

• Realized gains and losses

• Adjustments needed for the coming year

Integrating philanthropy into this process can help you:

• Strengthen your investment strategy

• Minimize taxable events

• Use charitable giving to offset realized gains

This approach exemplifies how philanthropy, when aligned with private wealth planning, can produce both financial discipline and significant social impact.

Why This Is a Conversation Worth Having

Philanthropy is most effective when it is intentional. A financial advisor can help you:

• Identify the most suitable giving structure

• Understand tax considerations

• Determine which assets to donate

• Build a long term charitable plan

• Align your giving with personal and family values

Done thoughtfully, philanthropy becomes a core component of a well rounded wealth strategy.

How Our Private Wealth Team Can Help

Our Private Wealth team collaborates closely with clients to design customized charitable giving plans that optimize both personal impact and tax efficiency. Whether you are considering a one-time gift, building a long-term legacy, or integrating philanthropy into your broader financial plan, we are here to support you.

If you are planning charitable contributions before year's end, now is the ideal time to begin the conversation. Together, we can create a giving strategy that reflects what matters most to you today and into 2026.

Contact an investment advisor today at 604.643.0101 or cashgroup@cgf.com.

Book a meeting today with our of our advisors: https://calendly.com/cashgroup-privatewealth-cgf