The plaque pictured below arrived amid a blur of sympathy cards and flowers after my father's passing in 2009. It wasn't the most expensive gift we received, but it was the most meaningful – a simple acknowledgment of donations made to multiple charities in his name. This gesture perfectly captured my father's essence: my Dad lived "a life of sacrifice." Always looking to be of help to others in need, whether through anonymous financial gifts or stopping to help stranded motorists change their tires on roadsides.
His example taught me that true legacy isn't about what we leave behind – it's about how we live each day.
We should challenge ourselves to live as we would like to be remembered.
What will your legacy be?
At Carnegie Private Wealth, we've learned that many of our clients share this desire to create meaningful impact while building their financial future. We help them achieve both through three sophisticated charitable giving strategies:
- Donor Advised Funds (DAFs): These powerful vehicles allow you to contribute cash or investment assets while receiving immediate tax advantages (60% deduction against AGI for cash contributions, 30% for securities). While you receive the tax benefit immediately, you maintain the flexibility to distribute funds to various charities over time. The funds can be invested for potential growth, amplifying your charitable impact. Your DAF can carry your family name – imagine "The Kirwan Family Charitable Fund" – creating a legacy that can be passed down through generations.
- Qualified Charitable Distributions (QCDs): At age 73, Required Minimum Distributions (RMDs) from retirement accounts become mandatory. These distributions typically increase your adjusted gross income and potential tax burden. However, by directing your RMD directly to charity through a QCD, you can satisfy your distribution requirement while avoiding the associated tax impact and potential bracket increases.
- Appreciated Securities Donations: For successful investors holding appreciated stock, donating these securities directly to charity offers dual benefits: avoiding capital gains tax while receiving a full charitable contribution deduction (30% against AGI). This strategy effectively supports charitable causes while strategically reducing concentrated equity positions.
These strategies are particularly valuable if you:
- Seek to create a lasting family legacy of giving
- Need sophisticated tax management solutions
- Have reached RMD age and want to maximize charitable impact
- Hold appreciated securities and want to optimize charitable giving
Like my father's roadside tire changes, sometimes the most meaningful help comes from knowing exactly what tools to use at the right moment. Carnegie Private Wealth can help you establish and manage your DAF, facilitate QCDs with local charities, and identify the most advantageous appreciated securities for donation based on your unique situation.
Let's connect and get you on the path towards living your legacy through impactful giving.
