For many families, giving is one of the most rewarding uses of wealth. In 2024, Americans gave a record $592.5 billion to charity, highlighting how generosity remains at the heart of our culture, even amid rising uncertainty and changing philanthropic trends.
Yet for many families, charitable contributions happen on a year-to-year basis, sometimes prompted by a direct request, a fundraiser, or a holiday appeal. These acts of generosity matter, of course. But they often lack a cohesive and balanced approach that connects them to deeper values or longer-term impact.
An intentional, personalized family giving strategy can bridge the gap.
A well-structured giving plan can multiply a donor’s influence. In households that set clear goals and develop a mission for their giving, studies find greater overall satisfaction within the family and increased social impact. Strategic donors tend to focus on supporting fewer organizations, which can be a good thing. This type of support comes with deeper personal connections and the ability to be more hands-on, which can drive measurable outcomes and lasting change.
Tax efficiency is another important benefit of having a strategy. Whether through donor-advised funds (DAFs), family foundations, charitable trusts, or smart beneficiary designations, a planned approach to giving can offset tax burdens and stretch the reach of every gift. For example, DAFs allow donors to contribute appreciated assets, receive immediate tax deductions, and recommend charitable grants over time. DAF grantmaking has shown resilience even during periods of economic uncertainty, with major sponsors reporting payout rates above 25% and facilitating nearly $55 billion in grants in 2023 alone.
A Qualified Charitable Deduction (QCD) is another option worth exploring. For those over age 70½, a QCD enables up to $108,000 (2025 limit) in annual gifts directly from an IRA, fulfilling required minimum distributions without increasing taxable income. Naming a charity as the beneficiary of a retirement account also remains a tax-advantageous legacy strategy.
A giving strategy can be a powerful tool for family engagement, strengthening generational values and connection. When families make philanthropy a regular, visible part of their lives, research finds it shapes generational habits of generosity and stewardship. A structured strategy guides current giving and communicates purpose and values to children and grandchildren, creating a ripple effect that can endure for generations.
Building Your Strategy
We know the importance of a giving strategy, but how do you build one?
Begin with your mission: What change do you want your wealth to help create in the world? What causes do you care most about? Clarity on purpose makes it easier to direct resources for maximum impact.
Next, define your giving vehicles and budget. Just as investments and retirement accounts have allocations, so should charitable dollars. This ensures generosity is both sustainable and aligned with broader financial and estate plans.
Involving the family is also a crucial step. For high-net-worth families, philanthropy opens the door to meaningful intergenerational conversations about wealth and values. Annual meetings where each family member champions a cause, cooperative research and decision-making, and setting aside a portion of giving for younger generations to direct all serve to strengthen deeper connections and encourage financial literacy. Studies consistently show that families who share in the giving process cultivate a stronger sense of purpose, relevance, and legacy.
Finally, it’s important to establish metrics for tracking and measuring results. While philanthropy is not about scorekeeping or measuring outcomes—such as students graduated, families served, or research milestones reached—it can heighten satisfaction and accountability while keeping generosity anchored to core values.
Bringing It All Together
Philanthropy should never feel like a checklist item. It’s a chance to bring meaning, purpose, and connection to your wealth. By aligning your giving with a broader strategy, you strengthen the causes you support and prepare the next generation to carry those values forward. Thoughtful giving has the power to outlast markets, laws, and even lifetimes, becoming one of the most enduring measures of your legacy.
When it’s time to define or revisit your plans, working with a trusted financial advisor helps ensure decisions are made with purpose and perspective. They can help coordinate philanthropy with your broader wealth, tax and estate strategies, ensuring your generosity makes a difference today, and also supports the lasting legacy you want to build.
IMPORTANT DISCLOSURES:
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. In addition, information presented in this presentation is believed to be factual and up to date, but Newport Capital Group, LLC does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.
This presentation includes forward-looking statements and opinions, including descriptions of anticipated market changes and expectations of future activity. Forward-looking statements and opinions are inherently uncertain, and actual events or results may differ materially from those reflected in the forward-looking statements. In addition, all expressions of opinion are subject to change without notice in reaction to shifting market conditions. Therefore, undue reliance should not be placed on such forward-looking statements and opinions.
The tax and estate planning information offered by Newport Capital Group is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Past performance is no guarantee of future performance.
Sources:
1. https://givingusa.org/giving-usa-2025-u-s-charitable-giving-grew-to-592-50-billion-in-2024-lifted-by-stock-market-gains/
2. http://www.nptrust.org/philanthropic-resources/charitable-giving-statistics/
3. https://www.philanthropy.com/article/is-the-good-news-from-giving-usa-momentum-for-2025
4. https://scholarworks.indianapolis.iu.edu/server/api/core/bitstreams/9631fc6a-945b-4d25-b6dd-06bd0bcf233e/content
5. https://www.philanthropyroundtable.org/resource/donor-advised-funds-payout-trends-inactivity-policies-and-accessibility/
6. https://www.nptrust.org/annual-reports/daf-spotlight-economic-uncertainty/
7. https://www.nptrust.org/reports/daf-report/
8. https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/attachments/80983538/1130f217-310f-478a-8e9d-5ad5c0cd7345/SEPTEMBER-Creating-a-Personal-Giving-Strategy-That-Aligns-with-Your-Legacy.docx
9. https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/attachments/80983538/7b39bb19-9534-4a26-89da-fe4f778fb8cb/Creating-a-Personal-Giving-Strategy-That-Aligns-with-Your-Legacy.docx