As the holidays approach, many of us feel a renewed sense of gratitude and connection. It’s a season for reflection on what we value, who has shaped us, and how we might give back. For some, that means volunteering or donating to a favorite cause. For others, it’s an opportunity to take a more strategic approach, creating a charitable gifting plan that weaves generosity into their broader financial picture.
At Grunden Financial Advisory, Inc., we see charitable giving as more than a year-end tradition. Whether you’re approaching peak earning years, managing a business, or preparing for a future liquidity event, strategic charitable gifting can help you to make a lasting impact while also supporting your long-term goals for family and community.
Start with Purpose
Every meaningful giving plan begins with clarity of purpose. Before focusing on how or where to give, take time to reflect on why generosity matters to you. What experiences have shaped your perspective on giving? Are there specific causes that resonate because of your personal story?
Our Charitable Giving Workbook was created to guide you through these questions and help you define a Giving Purpose Statement. This simple exercise can serve as your compass, helping you decide which opportunities best reflect your values and vision. Whether your focus is on education, health care, environmental stewardship, or local community programs, writing down your motivations can bring greater focus and meaning to your giving decisions.
When your purpose is clear, generosity becomes more intentional, and often more fulfilling.
Combine Generosity with Strategy
Once you’ve identified what drives your giving, it’s time to consider how to make that giving most effective. There are many ways to contribute, from straightforward cash donations to more advanced tools such as Donor Advised Funds (DAFs) or Qualified Charitable Distributions (QCDs). Each method has its own benefits and implications, depending on your goals and tax situation.
For example, a Donor Advised Fund allows you to make a charitable contribution, potentially receive an immediate tax deduction, and recommend grants to organizations over time. Qualified Charitable Distributions, on the other hand, can be a tax-efficient way for individuals aged 70½ or older to direct required minimum distributions from an IRA directly to a qualified charity.
If you’re interested in exploring these kinds of options, our previous blog on tax-efficient gifting offers additional perspective on how charitable planning can fit within your overall wealth and estate strategy.
As with any financial or tax-related decision, it’s essential to coordinate with your advisors to determine which strategies best match your situation. Thoughtful planning not only maximizes the impact of your giving but also helps ensure your broader financial goals remain on track.
Bring Your Family into the Conversation
Philanthropy can also be a powerful way to connect generations. The holidays naturally bring families together, creating a meaningful time to talk about shared values and charitable priorities. You might ask family members which causes they care about most, discuss ways to combine resources for greater impact, or consider how charitable giving could be integrated into your estate plan.
Our Charitable Giving Workbook offers space to reflect on these questions and record ideas for involving loved ones. Whether it’s designating annual family gifts, setting up a charitable fund in honor of someone special, or something as simple as sharing stories about generosity, these conversations can help make giving an enduring part of your family’s legacy.
Give with Intention, Plan with Confidence
The most successful charitable gifting plans combine reflection, strategy, and follow-through. They begin with a desire to make a difference and evolve into a framework that guides how, when, and where to give. When you plan thoughtfully, generosity can become not only a heartfelt act but also a sustainable part of your financial life.
As the year comes to a close, consider setting aside time to revisit your charitable goals and ensure they still align with your current circumstances. Whether you’re giving to celebrate the season, support a cause close to your heart, or establish a family tradition, the Grunden Financial Advisory, Inc. team is here to help.
