Charitable Giving with Fortunium Wealth Management

Charitable giving is an integral part of financial and estate planning, allowing individuals to support causes they care about while managing their tax liabilities. Fortunium Wealth Management works with high-net-worth individuals to design structured charitable giving strategies that align with their financial goals and philanthropic values. Strategic giving can provide potential tax deductions, reduce capital gains exposure, and create long-term financial benefits for both the donor and the chosen charitable organization.

There are multiple ways to incorporate charitable giving into a financial plan, each offering unique benefits based on an individual’s situation. Fortunium Wealth Management assists clients in selecting the most effective method to align their charitable intentions with tax-efficient strategies.

• How It Works: A donor-advised fund allows individuals to contribute to a charitable account, receive an immediate tax deduction, and distribute the funds to charities over time. The assets within the fund can be invested and grow tax-free.
• Who It Helps: Individuals seeking flexibility in their charitable donations while maximizing tax benefits.
• Tax Considerations: Contributions to a DAF can provide an income tax deduction in the year they are made, while assets grow without tax implications.

• How It Works: A Charitable Remainder Trust allows individuals to donate assets into a trust while retaining an income stream for themselves or beneficiaries. After a specified period or upon the donor’s passing, the remaining assets go to the designated charity.
• Who It Helps: High-net-worth individuals looking for income generation while making a charitable contribution.
• Tax Considerations: Potential reduction of estate taxes, deferral of capital gains tax, and a partial income tax deduction.

• How It Works: The reverse of a CRT, a Charitable Lead Trust provides regular payments to a charity for a designated period. At the end of the term, the remaining assets transfer to beneficiaries, often at a reduced tax rate.
• Who It Helps: Individuals seeking to transfer wealth to heirs while supporting a charitable cause.
• Tax Considerations: Reduces the taxable value of the estate while fulfilling charitable commitments.

• How It Works: Individuals over 70½ can donate directly from their IRA to a charity, satisfying Required Minimum Distributions (RMDs) while excluding the amount from taxable income.
• Who It Helps: Retirees looking to reduce taxable income while fulfilling charitable giving objectives.
• Tax Considerations: QCDs lower adjusted gross income, which can reduce tax liabilities on Social Security benefits and Medicare premiums.

• How It Works: Donating appreciated assets, such as stocks or real estate, instead of cash allows donors to avoid capital gains taxes while receiving a tax deduction for the fair market value of the asset.
• Who It Helps: Investors with highly appreciated assets looking to support a charity while reducing tax exposure.
• Tax Considerations: Eliminates capital gains tax while maximizing tax deductions.

1. Assessment of Financial & Philanthropic Goals – Understanding the client’s charitable interests and tax situation to determine the most effective giving strategy.
2. Selection of Giving Method – Identifying the right charitable vehicle based on financial planning objectives, estate considerations, and tax implications.
3. Structuring the Plan – Establishing trusts, funds, or direct donation strategies in alignment with the client’s financial structure.
4. Ongoing Monitoring – Reviewing the plan periodically to adjust based on tax law changes, financial goals, or evolving charitable priorities.
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Strategic charitable giving provides a structured way for high-net-worth individuals to support meaningful causes while integrating tax-efficient wealth transfer and financial planning. Fortunium Wealth Management works with clients to develop customized charitable giving strategies that fit within their overall financial plans.