Trending
Every year around this time, generosity takes center stage. Our inboxes fill with appeals, communities rally around local causes, and clients—busy with year-end tasks—start thinking about how to give. But for many families, charitable giving still happens on impulse: a last-minute check, a quick online donation, or a reaction to a holiday fundraiser.
Financial advisors know there’s a better way.
The most powerful giving strategies don’t just reduce taxes or increase efficiency—they deepen the emotional connection clients have with their money and their community. And increasingly, advisors are helping clients move away from “checkbook charity” toward more intentional, more strategic forms of philanthropy.
One of the simplest—and most overlooked—strategies?
Donating appreciated assets instead of cash.
Donating Appreciated Securities: The Most Underutilized Tool in Charitable Planning
Despite how easy it is, most clients have never been shown how to donate appreciated stock, ETFs, mutual funds, or even crypto. Yet for taxpayers with long-held gains, it can be one of the smartest moves they make all year.
When clients donate long-term appreciated assets, two things happen:
-
They avoid capital gains tax entirely on the appreciation.
-
They receive a deduction for the full fair-market value (if they itemize).
That double benefit is hard to beat.
Consider a simple example:
A client bought $10,000 of a stock years ago that’s now worth $100,000.
If she sells it, she owes taxes on the $90,000 of growth.
If she donates the shares directly, she:
-
Eliminates the entire capital gain
-
Claims the full $100,000 deduction
-
Allows the charity to receive the full value
And if she still wants exposure to the stock?
She can simply repurchase it immediately—resetting her cost basis to today’s price and reducing future tax drag.
For advisors, this is portfolio management, tax planning, and values-based advising rolled into one.
Meet the Donor-Advised Fund (DAF)
Before exploring other giving tools, it’s worth highlighting a vehicle that has transformed the charitable landscape for mass-affluent families: the donor-advised fund.
A DAF operates like a personal giving account. You contribute assets now—cash or appreciated securities—take the deduction immediately, and recommend grants over time. Today’s most widely used DAF sponsors include Fidelity Charitable, DAFgiving360 (formerly Schwab Charitable), and Vanguard Charitable.
Why People Use DAFs (according to Ted Hart, author of The DAF Revolution)
-
Flexible & strategic – Contribute now, give later, and time deductions to high-income years.
-
Simple – One contribution can fund many charities; the sponsor handles all nonprofit verification.
-
Accessible – Many DAFs offer low or no minimums—making structured giving available far beyond the ultra-wealthy.
-
Family-friendly – A powerful way for parents and adult children to make giving decisions together.
-
Tax-efficient – Immediate deduction + tax-free investment growth inside the DAF for future grants.
Who Actually Uses DAFs?
With roughly 1.5–2 million DAF accounts in the U.S., donors now include:
-
Mass-affluent families
-
Middle-income households
-
Workplace giving participants
-
Corporate teams
-
Community and faith-based donors
David Johnston, CFP®, Partner and Wealth Management Advisor at One Point BFG Wealth Partners in New Jersey, has seen DAFs reshape how families approach giving: “DAFs are a very powerful tool for those who want the tax deduction today but also want to control the assets over time. Some of our clients involve their family in deciding where donations go. It’s a great way to teach the values of philanthropy.”
For many clients, a DAF becomes the organizational backbone of their charitable life—the place where generosity becomes intentional rather than reactive.
Why Donating Appreciated Assets Makes Sense: Advisor Perspectives
Financial advisors across the country say donating appreciated assets isn’t just a tax strategy—it’s a mindset shift that helps clients align wealth with values.
“When clients gift appreciated assets instead of cash, they’re maximizing both the impact of their donation and the efficiency of their taxes,” says Mackenzie Richards of SK Wealth in Providence, RI. “It’s not just about saving money—it’s about aligning generosity with good financial discipline.”
Richards notes that many new clients treat charitable giving as something they squeeze in at year-end. Advisors can help them build a far more meaningful and fulfilling plan.
“Writing a check is fine, but clients feel more connected and fulfilled when giving is part of a bigger, intentional plan. Giving becomes less of a transaction and more of a reflection of who you are.”
And the giving doesn’t stop at money.
“Some of the most impactful ‘giving’ happens when you show up, pitch in, and get your hands dirty,” Richards adds. “You see the impact firsthand, and you walk away with more than a receipt.”
Advisors who open the door to that kind of planning—head, heart, and hands—often strengthen their client relationships in powerful ways.
The Family Side of Philanthropy
Advisors who work with multi-generational families are seeing a rising desire to use charitable giving to bridge values across generations.
“Charitable giving can be an act of family storytelling,” says Suzanne Schmitt, Managing Director of Next Chapter.
“When parents and adult children make giving decisions together—whether through a donor-advised fund or direct contributions—it turns philanthropy into a legacy conversation about what really matters.”
Clients aren’t just giving money—they’re passing down meaning.
Crypto Giving: The New Frontier in Philanthropy
More donors—especially younger high-earning professionals—are giving appreciated crypto assets.
“Bitcoin native giving is becoming a more prominent part of the charitable landscape,” says Joe Kelly, Co-Founder & CEO of Unchained in Austin.
DAF grantmaking (including crypto-enabled DAFs) grew 20% in 2025 and surpassed $6.6 billion, reflecting a national shift toward structured, long-term philanthropy.
Crypto donations offer the same tax benefits as appreciated stock: donors avoid capital gains and still deduct the full fair-market value.
Kelly notes another advantage: “Bitcoin offers unparalleled global reach. It moves across borders without the friction of banking restrictions or international transfer costs. Nonprofits can receive funding faster, with fewer barriers, and with greater impact.”
For advisors with crypto-savvy clients, this opens the door to a new generation of giving strategies.
Intentional Generosity Is the Real Goal
Across all these tools—appreciated stock, DAFs, family philanthropy, crypto—one theme rises above the rest: intentionality.
Clients don’t just want efficiency. They want meaning.
They want their giving to say something about who they are—and what they value.
When advisors connect tax planning with personal purpose, charitable giving becomes one of the most emotionally rewarding parts of the wealth conversation.
A Season for Purpose, Not Pressure
The holidays can be hectic. But giving doesn’t need to be rushed, reactive, or transactional. With thoughtful planning, charitable strategies can become one of the most joyful parts of a client’s financial life.
And for retirees in particular, generosity is often central to identity and legacy.
As a retirement coach at RetireMentors, I help clients understand the meaning of money in their lives—and for many, that means finding the right nonprofits to support, volunteer with, and champion. Retirement isn’t the end of giving. For many, it’s the moment when giving becomes more intentional, more impactful, and more deeply connected to their purpose.
That’s a legacy worth building.
Related: How (And When) to Take Crypto Investing Advice From Your Adult Children