Charitable Giving: Creating your personalized strategy

Being strategic in choosing which assets to give and how to structure your giving goals can be beneficial for both you and the charity.

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For more information on the tax implications of charitable giving, reach out to your Edward Jones advisor for the full report, "Charitable giving: Creating your personalized strategy." Your financial advisor can help you think through charitable giving goals, potential tax implications, and tradeoffs to create a financial strategy for your unique needs. And if you want to read more about specific financial vehicles for charitable giving, you can read our report on strategies to fit your unique charitable giving needs.

Selecting which assets to give during your lifetime

Selecting which assets to not give

Estate Planning and charitable giving

Giving to charity at the time of your passing (also referred to as testamentary giving) allows you to maintain control of the assets during your life, should you need them. Your estate is eligible for an unlimited charitable tax deduction, so giving can reduce your heirs' estate tax liability.

Using your will

A will can provide the opportunity to give instructions for how you want your assets to be distributed after you pass, including making an outright, testamentary gift to a charity. Because estates are eligible for unlimited charitable tax deductions, this can be a good way to help minimize potential estate taxes. Wills can be combined with other, more complex giving methods (such as donor-advised funds (DAFs), charitable trusts, and foundations) to offer additional benefits, while preserving the charitable deduction for your estate.

Naming a non-profit as a beneficiary

Just as you can name a person as your beneficiary on certain accounts, like insurance policies, you can also name a non-profit as your beneficiary. Similarly, you can name a charity for transfer-on-death (TOD) or payable-on-death (POD) designations.

Donor-advised fund (DAF)

The Edward Jones Charitable Gift Fund, a donor-advised fund, provides the potential for an immediate tax deduction for your irrevocable donation to the fund. In addition, you'll have the opportunity to advise on how the money is invested, when the funds are granted, and which charities receive grants. Since the money is invested, you have the potential to grow your charitable impact over time. The higher level of ongoing control allows several benefits, such as:

  • The ability to evaluate charities over time
  • Share your giving values with loved ones
  • Leave a legacy of charitable giving

By aggregating multiple years' worth of planned charitable giving into a single DAF donation, you may be able to realize greater tax benefits while still meeting your annual giving goals. You can also name a successor advisor to continue in your spirit of giving and allow your family to make an impact in your or their name.

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Zach D. Gildehaus, CFA®, CFP®, CEPA® Senior Analyst, Client Needs Research

Zach Gildehaus joined Edward Jones in 2013. He is a business owner strategist on the Client Needs Research (CNR) team, where he focuses his research efforts on strategies for charitable giving and business owners.

Prior to CNR, he was a senior analyst in Investment Manager Research (IMR), where he spent more than six years covering both active and passive strategies across several asset classes.

Important information:

This content should not be depended upon for other than broadly informational purposes. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

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