“Above the Line” Thinking in Charitable Giving

When gathering with family and friends for the holiday season, it’s a natural time to give thanks for your good fortune. Perhaps you will pick out special gifts for loved ones or send funds to a charity whose mission you admire. 

Certainly, unplanned gifts like this are thoughtful and worthwhile. However, you might be considering how your gifts can make a bigger impact. Often, when our clients discover that their financial plan has delivered more than they expected, they realize they no longer need to ask, “Do I have enough to sustain my lifestyle?” and can instead start to wonder, “Do I have enough to accomplish something more?”  

If you are not yet working with an advisor, you might be wondering how to feel confident that you have “enough.” After all, it’s a relative term—a highly personal amount that varies from client to client. That’s why we’ve developed multiple planning tools and assessments that guide our clients through these calculations. When you feel assured about having enough, you can start to see the potential of more intentional giving.  

At Truepoint, we view wealth as a tool—and not an end in itself—that can help you achieve your goals and support your values. This goes for how you spend your money, to how you provide for family members, to the philanthropic legacy you build. Through every step of the planning process, we work closely with our clients to build a more intentional, sustainable, and values-driven approach to wealth.  

Certainly, a charitable giving plan can provide practical and strategic benefits. Our accounting and tax preparation teams are always evaluating the right structure and timing of each client’s gifts.

But we also believe that giving should not be driven by bottom-line accounting maneuvers alone; that becomes a case of the tail wagging the dog. A legacy is about more than simply accumulating and distributing wealth. It involves passing on your personal values, whether directly to the people you love or to the charitable causes that you support. 

Aligning Your Charitable Giving With Your Values

Many clients come to us during transitional phases in their lives, such as selling a business or preparing for retirement, seeking guidance on aligning their financial decisions with their personal values and goals. Often, they want to secure their financial future while increasing the impact of their charitable efforts, especially in their local communities.

As part of our process, we dedicate time to thoroughly understand each client’s financial situation, personal interests, and philanthropic aspirations. For individuals experiencing a significant income event, like the sale of a business, we explore strategies to optimize tax efficiency while creating sustainable giving plans. One effective approach is establishing donor-advised funds, which can offer tax benefits and provide a streamlined method for managing charitable contributions over time.

We also help clients clarify their philanthropic priorities through structured discussions and exercises, enabling them to focus their resources and efforts on causes that resonate deeply with them. Additionally, we can connect clients with reputable organizations that align with their interests, fostering meaningful relationships and opportunities for involvement beyond financial contributions. 

For many, retirement offers the chance to combine financial support with hands-on engagement, using their time and talents to make a lasting impact on the causes they care about most. Our goal is to empower clients to achieve their charitable and financial goals while making a difference in their communities. 

To craft your unique charitable giving plan, you should first define the problems you want to solve, next determine how you will measure potential solutions, and then build meaningful, long-term partnerships with the right organizations.

Creating Your Gifting Plan

This holiday season, while you consider your own gifting plan, ask yourself these three questions that can help you focus your efforts: 

• What are three things I’d like to see more of in the world?

• What three issues impact my local community the most?

• What cause would I most like my name to be associated with?

At Truepoint, we work side-by-side with clients to identify their most important values and craft a concrete vision for their legacy. We can then connect them with reputable charitable organizations or help vet organizations that pique their interests.

Our clients find this to be a gratifying process. They move from an overabundance of wealth with an unclear purpose toward a sustainable stream of values-based giving that delivers measurable benefit. By taking a more focused and sustained approach to giving, you can make a greater and longer-lasting impact on the causes and organizations you believe in.