Beyond the Gift

November 20, 2025

Philanthropy has always been about more than money. It’s about purpose—using resources, influence, and foresight to create enduring impact. But when guided by thoughtful planning, charitable giving also becomes a powerful component of wealth strategy, allowing families to align their values with financial goals in ways that can benefit both their loved ones and the causes they care about most.

In 2024, Americans donated an estimated $592.5 billion (in inflation‑adjusted 2024 dollars), according to Giving USA, underscoring how generosity continues to shape the country’s financial landscape. Whether through family foundations, donor-advised funds, or legacy trusts, philanthropy can be as strategic as it is heartfelt.

Understanding Modern Philanthropy

As Michael Mongin, CPWA®, explains in Quarter Over Quarter, every charitable plan begins with vision—what kind of impact a family hopes to make, and how that intention fits within broader financial and estate objectives.

Before selecting any vehicle, individuals should reflect on their motivation. Are they seeking to create intergenerational involvement? Manage taxes more efficiently? Support specific institutions in perpetuity? The answers inform both the giving strategy and its structure.

Key Vehicles for Strategic Giving

Modern philanthropy offers a range of tools that balance generosity with tax efficiency and long-term control.

Donor-Advised Funds (DAFs)

Donor-advised funds have become one of the fastest-growing charitable vehicles in the United States, with more than $229 billion in assets as of 2023 (National Philanthropic Trust). A DAF functions like a “charitable investment account.” Contributions—cash, securities, or other appreciated assets—are irrevocable, but the donor retains the ability to recommend grants to qualified nonprofits over time.

Advantages:

Immediate tax deduction for contributions
Avoidance of capital gains on appreciated assets
Simplified administration managed by a sponsoring organization
Option for anonymity when making grants

Ideal for: Families or individuals who want flexibility without the cost and complexity of operating a private foundation.

Private Foundations

A private foundation offers maximum control—direct oversight of investments, grant-making, and governance—but also comes with significant regulatory and administrative requirements, including annual tax filings and distribution mandates.

Because of these responsibilities, foundations typically suit those contributing $10 million or more or families seeking to engage children and grandchildren in stewardship and decision-making

They can be a cornerstone of a multigenerational wealth plan, instilling shared purpose through regular family meetings and mission reviews.

Charitable Remainder and Lead Trusts

For those balancing philanthropic intent with income needs, charitable remainder trusts (CRTs) and charitable lead trusts (CLTs) can provide elegant solutions.

CRTs allow donors to contribute appreciated assets (like stock or real estate), receive an income stream for life or a term of years, and ultimately leave the remaining assets to charity. The donor benefits from an immediate partial income-tax deduction and avoids realizing capital gains when the trust sells the asset
CLTs, by contrast, provide current income to a charity for a set term, after which the remaining assets pass to heirs—often reducing or eliminating estate and gift taxes.

These trust structures are especially valuable when managing low-basis, highly appreciated assets that may otherwise create substantial tax consequences upon sale.

Qualified Charitable Distributions (QCDs)

For retirees over age 70 ½, a Qualified Charitable Distribution allows up to $105,000 per year per taxpayer in 2024 (indexed for inflation thereafter) per taxpayer to be sent directly from an IRA to a qualified charity. The amount counts toward the Required Minimum Distribution (RMD) but is excluded from taxable income.

This can reduce adjusted gross income, potentially lowering Medicare premiums and minimizing taxation of Social Security benefits, making QCDs one of the most tax-efficient ways for retirees to give.

Tax Considerations and Recent Legislation

While philanthropy begins with generosity, it’s also governed by a detailed tax code. Mongin highlighted updates from the so-called “so‑called “Big Beautiful Bill Act,” a humorous reference from the podcast rather than an actual piece of legislation,” which adjusted deduction thresholds and standard-deduction add-ons for charitable giving

Key current rules (based on IRS Publication 526 and 557) include:

Deduction limits: Up to 60 percent of adjusted gross income (AGI) for cash donations to public charities; 30 percent for donations of long-term appreciated securities.
Carry-forward: Unused deductions can typically be carried forward for five years.
Appreciated Assets: Donating appreciated securities directly to charity avoids capital-gains tax while allowing a deduction for fair-market value.
Private Foundations: Deduction limits are generally lower—30 percent of AGI for cash and 20 percent for securities—reflecting their private-control status.

Building a Family Legacy of Giving

Beyond the numbers, philanthropy is an opportunity to transmit values. Families who meet annually to review charitable priorities often find that giving becomes a shared tradition, helping younger generations appreciate both wealth and responsibility. As Tom Moran noted in the discussion, creating a family foundation can foster stewardship, perspective, and unity—turning charitable decisions into learning moments for children and grandchildren

In practice, this may include drafting a family philanthropic mission statement, convening periodic meetings, and encouraging each member to nominate a cause. These practices keep the purpose of giving alive across generations.

A Holistic Approach

At its core, philanthropy reflects how wealth can serve both personal and public good. From tax-efficient income strategies to legacy preservation, the benefits extend beyond balance sheets. For advisors, the goal is to help clients translate intentions into actionable plans, ensuring that every dollar given reflects both generosity and sound strategy.

For additional perspective on charitable giving structures and legacy planning, click here.

Sources

This commentary is for informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The views expressed are those of the author(s) as of the date of publication and are subject to change without notice. Past performance is not indicative of future results.

This material may have been prepared using data and analysis from a variety of sources, including but not limited to: Bloomberg, FactSet, Morningstar, S&P Global, Moody’s, Refinitiv, Capital IQ, CRSP, FRED, IMF, World Bank, OECD, and other third-party research providers. Additionally, portions of this content may have been generated or reviewed with the assistance of artificial intelligence tools, including OpenAI’s large language models or similar technologies. While we believe these sources to be reliable, we do not guarantee their accuracy or completeness.

Moran Wealth Management is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. For more information about our services, fees, and potential conflicts of interest, please refer to our Form ADV Part 2A, available upon request.