Most charitable giving starts with a good heart. 

A school is raising money.  The church has a campaign.  A nonprofit sends a year-end letter.  We give because we care, because someone asks, or because we’ve supported the organization for years. 

There’s absolutely nothing wrong with that, but at some point, it may be worth asking a different question: 

What do I actually want my giving to accomplish? 

For some people, the answer is deeply personal.  A hospital cared for a loved one.  Education changed the direction of your life or the people around you. Or maybe your faith has always made generosity towards others a priority, making sure that you leave your community a little better than you found it. 

Whatever the reason, intentional giving starts there, not with the tax deduction. The financial planning comes next. 

If you already plan to give, there may be better ways to do it than simply writing a check.  Appreciated investments can sometimes be donated directly. A Donor Advised Fund can allow you to set aside funds for charity today and decide over time where it should go. For those who qualify, distributions from an IRA can sometimes be directed straight to charity.  Each can have different tax implications, which is why the method of giving can matter almost as much as the amount. 

But perhaps the most interesting part of intentional giving has nothing to do with taxes. It can become a family conversation. 

Instead of simply deciding how much to give this year, talk about why you give. Ask your children or grandchildren what causes matter to them. Let everyone choose an organization to learn about. Visit one and volunteer together. Make generosity something the family participates in rather than something that quietly happens at the end of December. 

Because ultimately, charitable planning isn’t about finding a clever way to save taxes. It’s about making sure the dollars you were already willing to give are doing what you hoped they would do. 

A good financial plan should help you enjoy what you’ve built, take care of the people you love and support the things you believe matter. 

Sometimes the most meaningful question isn’t, “How much can I give?”  It’s simply, “What do I want my giving to mean?” 

Donor Advised Funds are not all the same and are not suitable for all investors. Funds invested in a DAF may not be distributed to your chosen charities promptly, and some Donor Advised Funds place restrictions on the types of charities you can designate as beneficiaries. Before investing with a DAF, it’s important to seek the advice of your financial and tax professionals who can guide you through the due diligence process, and help you get the most out of your charitable gifting strategy. 

Neither RBC Wealth Management, a division of RBC Capital Markets, LLC (“RBC WM”), nor its affiliates or employees provide legal, accounting or tax advice. All legal, accounting or tax decisions regarding your accounts and any transactions or investments entered into in relation to such accounts, should be made in consultation with your independent advisors. No information, including but not limited to written materials, provided by RBC WM or its affiliates or employees should be construed as legal, accounting or tax advice. 

RBC Wealth Management, a division of RBC Capital Markets, LLC, registered investment adviser and Member NYSE/FINRA/SIPC.