CASE STUDY
Charitable Gifting Strategy
Charitable households usually gift cash annually without a tax efficient strategy.
Often the gift is not deductible because the itemized deductions are lower than the standard deduction.
Problem
Gift in a way that minimizes taxes and maximizes wealth.
Solution
Bunch future gifts collectively into a Donor Advised Fund!
- Take an immediate deduction for the bunched charitable contributions!
- Support charities that you care about by directing future gifts from the fund!
- The funds can be invested for TAX FREE GROWTH!
- BONUS: Gift appreciated assets to the fund. You get the full deduction for the value of the asset but avoid the capital gains tax!
Benefit
Implementing this strategy of minimizing taxes can create wealth over time. It is not what you earn but what you keep that makes a difference!
The amount of the client’s projected net worth increases over their lifetime!
The selected charities get the same amount in the same time period!
