The Philanthropy Trifecta: Charitable Giving Tools to Support Your Client’s Giving Journey

A charitable remainder trust is designed to do two things at once. It provides income to your client or their beneficiaries for life or for a set period of time — and it ensures that remaining assets are directed toward charitable causes.

This structure can be especially useful when funded with appreciated assets. It may allow those assets to be sold within the trust without capital gains tax, creating more flexibility for planning.

As you help your client establish a trust, you may ask: where should the remaining assets go?

If a private foundation is named as the beneficiary, the available charitable deduction is often more limited. In many cases, it reflects the original value of the asset rather than its current market value, and the allowable deduction relative to adjusted gross income may be lower.

For clients who want to maximize both their charitable impact and their financial benefit, this can feel like a missed opportunity.

For many families, this isn’t an either-or decision.

A private foundation and a donor advised fund can work side by side. Together, they create space for both structure and flexibility, supporting established giving priorities while allowing room to respond to new opportunities.

Over time, however, priorities can shift. As clients look ahead, they may begin to consider simplifying their approach.

A donor advised fund can offer a path forward, particularly when:

• Family members have less interest in managing a private foundation
• Administrative responsibilities and costs are becoming more burdensome
• Identifying future leadership is challenging
• The family wants to focus more on giving and less on operations

In these moments, simplifying doesn’t mean stepping back from impact. It often means making it easier to stay connected.

Families often think about legacy not just in financial terms, but in terms of supporting neighborhoods, schools, arts organizations and community-based nonprofits that shape their community’s daily life.

Donor advised funds can help carry that legacy forward. Children and grandchildren can continue recommending grants to organizations they care about without needing to manage filings, compliance requirements or ongoing administration. That continuity matters because it allows families to stay rooted in community while adapting to change.