Create a Lasting Impact Through Planned Giving

Charitable giving has always been more than just a financial decision. It is a reflection of who you are and what you believe in. When thoughtfully structured, it becomes not only a way to make a lasting difference, but also a powerful part of your long-term financial and estate planning. Whether your giving is motivated by faith, shaped by family, or rooted in a desire to give back, planned giving allows your values to live on and continue speaking for you.

At its heart, planned giving is the process of intentionally designating financial or estate assets to a charitable organization, such as a church, foundation, or nonprofit, as part of your overall financial strategy. These gifts are arranged during your lifetime, but are often realized after your passing, offering continuing support to the causes you care about most.

Why Planning Your Giving Matters

Planned giving plays a vital role in sustaining the missions of churches, educational institutions, and community organizations. These gifts help fund facilities, support future leaders, and foster a lasting culture of generosity. But they also benefit donors, offering powerful financial advantages for individuals and families looking to give with purpose.

The U.S. tax code offers a range of incentives that reward charitable giving while promoting tax efficiency. For example:

• Cash donations are deductible up to 60 percent of your adjusted gross income (AGI).
• Gifts of appreciated assets—such as stocks or real estate—are deductible up to 30 percent of AGI and allow you to avoid capital gains tax.
• Qualified Charitable Distributions let individuals over age 70½ donate up to $100,000 annually from an IRA directly to a charity, without including the distribution in taxable income.

In addition to income tax benefits, planned giving can also serve as a strategic estate planning tool, particularly given the upcoming changes to federal gift and estate tax thresholds.

As of 2025, the lifetime gift and estate tax exemption is set at $13.99 million per person, but that figure is scheduled to increase to $15M per person starting in 2026. Any amount above the exemption may be taxed at a federal estate tax rate of approximately 40 percent, reduced by any taxable gifts made during your lifetime. While these exemption amounts are made “permanent” by recent tax law changes, nothing in tax policy is truly permanent. Future administrations could reverse course.

You may also take advantage of annual exclusion gifts—currently up to $19,000 per recipient, per year—without triggering gift tax. Larger gifts reduce your lifetime exemption amount and may eventually become taxable if the exemption is exhausted.

Charitable strategies—such as bequests, donor-advised funds, charitable trusts, or naming a nonprofit as a beneficiary—can help reduce the size of your taxable estate while making a lasting impact on the organizations and missions that matter to you. More than just a tax strategy, planned giving allows you to pass on your values and involve future generations in a shared spirit of stewardship.

Important Tools to Consider

Planned giving isn’t a one-size-fits-all approach. It offers a variety of flexible tools that can be tailored to reflect your values, financial priorities, and long-term goals. For many individuals and families, combining multiple strategies can help create a legacy that supports both loved ones and the causes they care about, while maximizing tax efficiency.

Here are some of the most effective options to consider:

• Wills and Revocable Living Trusts: One of the most straightforward ways to leave a lasting legacy, these estate planning tools enable you to designate charitable gifts in the form of a fixed amount, a specific asset, a percentage of your estate, or a residual bequest. For example, a couple might choose to name their church as a 10% residual beneficiary in their will, ensuring that their charitable priorities are honored while the majority of their estate continues to support their family.
• Retirement Accounts: Designating a charity as the beneficiary of an IRA, 401(k), or similar plan can be a highly tax-efficient giving strategy. Because these assets are typically subject to income tax when inherited by individuals, directing them to a nonprofit can reduce the overall tax burden on the estate and heirs. This approach is often used in combination with other tools to help preserve more tax-advantaged assets for family while also supporting charitable missions.
• Charitable Trusts: Charitable Remainder Trusts (CRTs) provide income to the donor or their beneficiaries for a specified period, with the remainder going to a designated charity. Charitable Lead Trusts (CLTs) do the reverse—providing income to the charity first, then transferring the remaining assets to heirs. Both of these options offer immediate tax benefits and long-term charitable impact.
• Donor-Advised Funds: Donor-Advised Funds function like charitable savings accounts. Donors contribute cash or appreciated assets, take an immediate tax deduction, and recommend grants to nonprofit organizations over time. Some families use these accounts to pre-fund several years’ worth of giving, or to engage their children in the grantmaking process, which can help build a culture of generosity across multiple generations.
• Life Insurance: Life insurance can help replace wealth that’s already been gifted to charity. Options for this include naming a charity as the beneficiary of your policy, donating an existing policy, or allowing a charity to purchase a policy on your life.

Ready to Take the First Step?

The first step can often be the hardest, but it doesn’t have to be. Planned giving starts with reflection: What causes have shaped your life? Which values do you want to pass on? And how can your resources reflect that vision, both now and for generations to come?

Once you’ve clarified your priorities, it’s time to bring in the right professionals. Your CRI advisor can help you evaluate the options, model potential outcomes, and identify strategies that align with your goals. Contact us today to begin a conversation about how your generosity can create a lasting legacy that maximizes tax efficiency while safeguarding your family’s future.