Planned giving offers meaningful ways to support charitable causes while helping people meet financial and estate-planning goals. For many donors, these charitable strategies provide opportunities to give thoughtfully, reduce taxes and create lasting community impact.
Charitable gift annuities (CGAs) benefit donors seeking both predictable income and charitable impact. A donor makes a gift to a qualified charitable organization and receives fixed payments for life, based on their age at the time of the gift. Donors may also receive an immediate charitable income tax deduction and partially tax-free income, offering financial stability during retirement. After the donor’s lifetime, the remaining funds support the charitable causes they designate.
Charitable remainder trusts (CRTs) can provide additional flexibility, particularly for donors contributing appreciated assets such as stock, real estate or closely held business interests. Assets transferred into the trust can often be sold without immediate capital gains tax, potentially preserving more value for investment and income generation. The donor or another beneficiary receives income for life or for a term of years, and the remaining assets ultimately benefit charitable organizations or funds designated by the donor. CRTs may be especially useful in situations involving highly appreciated assets or significant liquidity events.
Donor advised funds (DAFs) are charitable funds established with a community foundation or other qualified sponsoring organization offering a simple and flexible way to give. Donors receive an immediate tax deduction and can recommend grants to nonprofit organizations over time. Contributing appreciated assets to a DAF may also help avoid capital gains taxes while allowing donors to support multiple charitable interests through one giving vehicle. Many families use donor advised funds to involve children and future generations in philanthropy in lieu of a private foundation.
IRA qualified charitable distributions (QCDs) IRA QCDs allow individuals 70 1/2 and older to transfer funds directly from an IRA to qualified charities, potentially reducing taxable income. For those subject to required minimum distributions (RMDs), QCDs can satisfy all or part of the annual requirement while supporting causes important to them. This strategy is often more beneficial than taking a taxable distribution and making a separate charitable gift.
Local philanthropist Jean Duff established both a donor advised fund and a CGA in partnership with the Community Foundation for Monterey County (CFMC) to support her philanthropic journey. She also utilizes an IRA QCD each year to support her favorite nonprofits through Monterey County Gives! and has included her fund at the Foundation in her estate plans.
“My giving has grown to new areas of interest and it’s wonderful to see the impact.” – Jean Duff
As charitable planning becomes increasingly integrated with financial and estate planning, many individuals work closely with attorneys, CPAs, wealth advisors and philanthropic partners to identify strategies aligned with their values and long-term goals. The CFMC serves as a trusted partner in philanthropy, helping donors and their advisors explore charitable solutions that strengthen both personal legacies and community impact.
