Charitable giving is about more than generosity — it’s about doing it in a way that saves you money on taxes, protects your family, and leaves a lasting impact. Done right, your giving can support the causes you care about while strengthening your financial strategy.
Here are some of the most common starting points:
Trusts allow you to support a charity while still protecting your family. They also come with valuable tax benefits.
Charitable Remainder Trust (CRT): Pays income to you or a loved one during life, then leaves the remainder to charity. This creates a tax deduction today and can reduce estate taxes.
Charitable Lead Trust (CLT): Works in reverse — charity receives income for a set number of years, then the remaining balance goes to your children. This can lower gift/estate taxes and build a charitable legacy during your lifetime.
Retirement funds are some of the most tax-burdened assets to leave to heirs — but tax-free when left to charity.
Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can send up to $100,000 per year directly from your IRA to a qualified charity. This counts toward your RMD but doesn’t increase taxable income.
Beneficiary Designations: Naming a charity as a beneficiary of an IRA or 401(k) is a simple way to make a large gift without reducing what goes to your children from other accounts.
Life insurance can create a meaningful charitable gift for a relatively small cost.
Name a charity as the beneficiary of a policy.
Use a survivorship policy to fund a large legacy gift after both spouses have passed.
Pair life insurance with a trust to replace wealth for your heirs while still giving generously.
Annuities can be structured to provide reliable income while also supporting a charity.
Charitable Gift Annuities: You give funds to a nonprofit, and in return, they pay you (or a loved one) a guaranteed lifetime income. After your passing, the remaining funds stay with the charity.
Trust-Funded Annuities: Life insurance proceeds or other assets can be directed into a trust that immediately buys an annuity, creating a predictable stream of income for charitable purposes.
Every charitable tool also comes with tax relief:
Income tax deductions in the year you give.
Possible reductions in estate and gift taxes.
More efficient transfer of retirement accounts and life insurance proceeds.
Guarantees are based on the claims-paying ability of the issuer.
Once the basics are in place, charitable giving can go beyond simple tax deductions. Advanced strategies allow you to combine income, protection, and legacy planning so your generosity supports both your family and the causes you care about.
Pair a CRT with life insurance. The trust provides income during your lifetime and leaves the remainder to charity, while life insurance “replaces” that value for your heirs.
A CLT pays income to charity for a set number of years, then passes what’s left to your children.
By funding the CLT with assets that grow over time, you reduce gift/estate taxes while still leaving a strong inheritance.
A CGA provides guaranteed income to you or a loved one for life, with the remainder supporting charity.
Some families add life insurance so children receive a benefit equal to what was given away.
Instead of splitting your estate only between children, treat a nonprofit as an additional “heir.”
Life insurance or annuities can carve out a defined share for charity, ensuring your legacy aligns with your values.
Use life insurance or annuities to create an endowment for a cause that matters to you — mental health programs, scholarships, or local community initiatives.
For families with multiple children, charitable gifts can be used alongside insurance to equalize inheritances.
Some families want their giving to be more flexible, more personal, or more closely tied to their story. Beyond the basics and advanced strategies, there are creative approaches that align generosity with real-life needs.
Trust provisions that increase support to a mental health nonprofit during high-need years, then scale back when needs are lower.
Designating part of a survivorship policy to children and part to charity, making charity an equal “heir” without complicated structures.
A split-beneficiary annuity that provides income to a child with special needs, then redirects the remainder to charity after their lifetime.
Directing part of an insurance payout or trust to an emergency reserve for nonprofits facing unexpected crises.
Creating named endowments or scholarships, tying your family’s story to a cause in a visible, lasting way.
Using insurance to protect children from a first marriage while directing other estate assets to charity, ensuring fairness and impact without conflict.
While the heart of charitable planning is generosity, the reality is that tax savings are often what make bigger gifts possible.
Income tax deductions: Cash gifts deductible up to 60% of AGI; trusts and property gifts usually capped at 30%, with 5-year carryforward.
Avoiding capital gains: Using charitable structures helps bypass taxes that would apply if assets were sold first.
Estate & gift tax relief: Assets directed to charity are removed from your taxable estate.
“Bunching” strategies: Consolidate multiple years of giving into one year to maximize deductions.
IRA coordination: QCDs reduce taxable income and satisfy RMDs.
👉 The government essentially lets you choose: pay more in taxes, or redirect that money to the charities you care about.
Charitable giving isn’t only about generosity — it’s about doing it strategically.
Protect your family.
Maximize your tax savings.
Leave a legacy that lasts.
With the right plan, you don’t have to choose between heirs and impact — you can achieve both.