By Zach Whitchurch, President & Lynn Evans, Director of Family Office Services
When it comes to philanthropy, most people focus on its profound impact on others—and rightly so. But here’s something we often overlook: giving doesn’t just change the lives of the people or causes we support; it transforms the giver too. And yes, part of that transformation can come in the form of potential tax benefits.
Over the years, I’ve seen the joy my clients experience when their generosity aligns with smart financial planning. As a wealth advisor, my role is to help individuals and families maximize the impact of their giving—not just for the world but also for their long-term financial health.
Qualified Charitable Distribution (QCD)
For retirees managing required minimum distributions (RMDs), a Qualified Charitable Distribution (QCD) offers a tax-efficient way to give. If you’re over 70½ and have an IRA, you can donate funds directly from your account to a charity tax-free, helping to reduce your taxable income. For those aged 73 or older, donating all or part of your RMD through a QCD can provide meaningful support to the causes you care about while aligning with your overall financial strategy. It’s a simple yet impactful way to pair generosity with smart tax planning.
Donor-Advised Fund (DAF)
A Donor-Advised Fund (DAF) is like having a dedicated giving account designed to support the causes closest to your heart. Contributions to a DAF are tax-deductible, and the funds can grow tax-free until you’re ready to recommend grants to your favorite charities. While the account is managed by a third party, you maintain control over which organizations benefit from your generosity. It’s a flexible way to integrate charitable giving into your financial strategy and maximize the impact of your donations over time.
Exploring Trusts for Charitable Giving
If you’re considering ways to pair your charitable goals with financial planning, certain trust structures might be worth exploring. These trusts can offer potential tax benefits while also creating opportunities to support causes you care about. They can provide income to you or your family for a period of time, followed by a gift to charity, or provide income to the charity for a period of time, with the balance being paid to your beneficiaries. As with any planning strategy, these options come with complexities, including tax considerations and the impact of interest rates, so it’s important to work with an experienced advisor to see what fits best with your broader financial picture.
Private Foundation
A private foundation allows you to take a more active role in your philanthropy by establishing a dedicated entity to support the causes that matter most to you. These foundations can issue grants, fund programs, or even operate charitable initiatives directly. While setting up and managing a foundation involves some complexity, it offers flexibility in how funds are distributed and creates an enduring structure for giving.
Private foundations are typically tax-exempt and must benefit charitable, educational, religious, or scientific 501(c)(3) organizations. For families or individuals with a strong vision for their philanthropy, they can be an excellent way to build a lasting legacy and make a meaningful impact over time.
Appreciated Assets
Donating appreciated assets, such as stocks, bonds, real estate, or even art, can be a powerful way to support your favorite causes while managing your tax obligations. Instead of selling these assets and triggering capital gains taxes, you can donate them directly to a charity. This approach allows you to transfer the full value of the asset to the organization, potentially maximizing the impact of your gift.
For those with highly appreciated investments, this strategy can align your philanthropic goals with thoughtful financial planning. It’s a meaningful way to turn long-term gains into lasting good.
Manage Your Charitable Giving With Solidarity Wealth
At Solidarity Wealth, we know that giving isn’t just about making a financial impact—it’s about aligning your generosity with your broader goals and values. Whether you’re exploring new ways to give or refining an existing strategy, we can help you identify options that make the most sense for your unique situation. As with any financial plan, not every charitable giving strategy is the right fit for every client. If you’re ready to take a closer look at how philanthropy fits into your financial picture, let’s start the conversation. Reach out to us at info@solidaritywealth.com, contact us online, or call 385-374-1665 to schedule a discovery call.
About Zach
Zach Whitchurch is the President and a wealth advisor at Solidarity Wealth, a privately held, independent wealth management firm that serves as a multi-family office to some of the Mountain West’s most successful families, technology entrepreneurs, and executives. Zach works with clients to develop both “Wealthy Financial Habits” and “Healthy Financial Habits” and thrives on helping them understand their finances by simplifying the complex. He uses his broad knowledge on a wide variety of topics to implement creative strategies for clients as he helps them feel both seen and heard and supports them along the path to their dreams.
Prior to co-founding Solidarity Wealth, Zach was a financial advisor and a senior vice president of investments at Wells Fargo. He has a bachelor’s degree in accounting and a master’s degree in finance from the University of Utah and holds the CERTIFIED FINANCIAL PLANNER® and Certified Private Wealth Advisor® designations. He is also a Managing Partner of Solidarity Capital. Outside of work, Zach enjoys spending time with his wife and four children and being active in both indoor and outdoor sports. He is also involved with coaching youth sports, and loves to read and learn about how the world works on a deeper level.
About Lynn
Lynn Evans the Director of Family Office Services and a Tax Advisor at Solidarity Wealth, a privately held, independent wealth management firm that serves as a multi-family office to some of the Mountain West’s most successful families, technology entrepreneurs, and executives.
Lynn brings a wealth of experience to his role, advising families and individuals on complex individual, fiduciary, and business income tax matters, estate and gift tax planning, and fiduciary administration.
Prior to joining Solidarity Wealth, Lynn served as a Senior Trust Advisor at Wells Fargo Private Bank, where he helped successful clients identify their goals and worked closely with them to develop and implement comprehensive wealth strategies. Before his role at Wells Fargo, he worked as a senior tax manager for a large international CPA firm, specializing in complex tax issues for individuals, businesses, trusts, and estates.
Lynn holds a Bachelor of Arts in Accounting and a Master of Accountancy with an emphasis in tax from the University of Utah, as well as a Juris Doctor with a focus in Business Law and Estate Planning from Albany Law School. He is an active member of the Salt Lake Estate Planning Council and the American Bar Association, where he continues to engage with and contribute to the wealth management community. Outside of work, Lynn enjoys spending quality time with his wife and four children. A dedicated outdoorsman, he loves hiking, camping, and skiing, and is always eager to hone his home improvement skills or attend music performances and sporting events. To learn more about Lynn, connect with him on LinkedIn.
Solidarity Wealth is a registered investment adviser. This material is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Solidarity Wealth and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Solidarity Wealth unless a client service agreement is in place.
