By the time you’ve built a thriving career or business, you’ve done more than accumulate assets. You’ve shaped a story. The next chapter isn’t only about preserving wealth, but about deciding what that wealth represents and how it can continue to make a difference long after you’re gone.
For many people in their 50s and 60s, charitable giving is an essential part of that story. Whether you dream of supporting a local cause, funding scholarships, or ensuring your grandchildren grow up with a tradition of generosity, philanthropy can be more than a side note to your financial plan. With the right strategy, it can become a cornerstone of your legacy.
Why Charitable Giving Deserves a Place in Your Plan
A well-structured giving strategy goes beyond helping the organizations you care about. It can also:
- Reduce taxes – From income tax deductions to potential estate tax savings, charitable contributions can provide meaningful financial advantages.
- Strengthen family bonds – Involving children or grandchildren in giving decisions can help pass along values.
- Create lasting impact – A thoughtfully designed plan helps ensure your gifts continue to support causes well into the future.
But effective giving doesn’t happen by accident. Without a plan, it’s easy to write the occasional check and miss opportunities for bigger impact or tax efficiency.
Start With What Matters Most
The most powerful giving plans begin with your “why.” What issues or communities matter to you? Is it the local hospital that cared for a loved one? An environmental organization protecting the places you love? A scholarship fund that helps students follow in your footsteps?
Taking time to clarify your priorities helps you—and your advisor—choose the most effective tools for giving. For some clients, that means making annual gifts to charities they support today. For others, it means creating a structure that will outlive them.
Tools to Turn Good Intentions Into Strategy
There are many ways to give, but a few stand out:
Donor-Advised Funds (DAFs) – These accounts let you make a charitable contribution, often of appreciated stock, receive an immediate tax deduction, and recommend grants to your favorite charities over time. You control the timing of the gifts, which gives you flexibility while simplifying recordkeeping.
Qualified Charitable Distributions (QCDs) – If you’re age 70½ or older, you can give up to $108,000 tax-free each year directly from your IRA to a qualified charity. For those age 73 and above, these QCDs can also count toward your required minimum distribution (RMD) for the year. It’s a simple way to support the causes you care about while keeping the donation out of your taxable income.
Charitable Trusts – For larger estates or complex assets, a charitable remainder trust or charitable lead trust can provide income to you or your heirs while supporting charities you choose. These trusts can help reduce estate taxes and create a structured legacy.
Gifting Appreciated Assets – Donating stocks, real estate, or a share of your business can allow you to avoid capital gains tax while supporting a cause.
These strategies aren’t one-size-fits-all. The right mix depends on your assets, your retirement timeline, and the role you want philanthropy to play in your estate plan.
Weaving Giving Into Your Legacy
At Stirling Capital, we believe charitable giving is most powerful when it’s part of your larger financial story. Whether you’re selling a business, approaching retirement, or updating your estate plan, we’ll help you align your generosity with your goals, integrating giving into your retirement strategy, tax planning, and family conversations so nothing is left to chance.
Your wealth tells a story. Let’s make sure it’s one of purpose and generosity, today and for generations to come. Reach out to get started.
Disclosure: The information given herein is taken from sources that IFP Advisors, LLC, dba Independent Financial Partners (IFP), IFP Securities LLC, dba Independent Financial Partners (IFP), and its advisors believe to be reliable, but it is not guaranteed by us as to accuracy or completeness. This is for informational purposes only and in no event should be construed as an offer to sell or solicitation of an offer to buy any securities or products. Please consult your tax and/or legal advisor before implementing any tax and/or legal related strategies mentioned in this publication as IFP does not provide tax and/or legal advice. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual investors. This report may not be reproduced, distributed, or published by any person for any purpose without IFP’s express prior written consent.
