The Private Wealth Guide to Elevated Charitable Planning
A simple, actionable plan to deepen client loyalty and deliver best-in-class philanthropic solutions.
Why philanthropy matters for your practice
Philanthropy isn’t just a service — it’s a way to set your practice apart. Adding it to your strategic advice deepens client relationships, opens ongoing conversations about legacy and values, and positions you as a partner in your clients’ long-term legacy, not just their portfolio.
Why donor-advised funds should be your go-to tool
Tax efficiency
DAFs allow clients to receive immediate tax deductions on contributions, while avoiding capital gains taxes on appreciated assets.
Flexibility
Clients can choose when and how much to donate, and to which causes, without the administrative burden of managing individual donations.
Privacy
DAFs provide privacy for clients who may not want to publicly disclose their charitable giving.
Continued advisor involvement
A DAF allows you to remain actively involved in managing your clients’ charitable assets over time — engagement that extends well beyond traditional investment management.
Donor-advised funds have become an essential tool for high-net-worth clients looking to give strategically. 81% of high-net-worth individuals give to charity, and when asked who they trust most with their philanthropic decisions, financial advisors come in just behind their spouse.
Philanthropy and complex assets: what advisors need to know
DAFs excel at accepting non-cash contributions: clients claim an immediate deduction and avoid capital gains tax on appreciated assets, while the assets stay invested until ready to grant. Through Ren’s partnering sponsoring charities, DAFs can accept:
- Business interests — stock or shares in privately held companies
- Real estate — residential, commercial, or undeveloped land
- Alternative investments — private equity, hedge funds, or other illiquid assets
- Personal property — artwork, collectibles, and similar items
For assets tied to a liquidity event like a business sale, gift before the sale — the earlier, the more room to plan for tax efficiency.
Advanced giving vehicles: charitable trusts and private foundations
The most sophisticated clients often require the most tailored solutions. While charitable remainder trusts (CRTs), charitable lead trusts (CLTs), and private foundations all have their place, donor-advised funds remain the go-to tool for most clients.
Charitable remainder trusts (CRTs)
A strong fit for clients who want a meaningful charitable gift while retaining income, for life or up to 20 years. Especially valuable for highly appreciated assets like real estate or concentrated stock — donors bypass immediate capital gains tax, gain a potential income tax deduction, and diversify within the trust while still generating income.
Charitable lead trusts (CLTs)
Ideal for clients making a significant upfront charitable contribution while paying income to charity over a set term. At the end, assets return to the donor (grantor CLT) or pass to heirs (non-grantor CLT), often with transfer tax advantages. Grantor CLTs suit offsetting large taxable events like a business sale; non-grantor CLTs suit reducing gift and estate taxes to pass wealth to heirs.
Private foundations
may be the best option for clients who want to maintain full control over their charitable giving and have a large, sustained level of giving planned over many years — though they require more administration and compliance costs than a DAF.
Key takeaway:
DAFs provide flexibility, tax efficiency, and ease of use. While CRTs, CLTs, and private foundations offer specialized benefits, DAFs should remain the primary tool for most clients — and combining these tools allows you to offer the best of all worlds.
Planning for liquidity events: your client's business exit strategy
Beyond the financial side of a business sale, there’s a philanthropic opportunity: integrating strategic giving into these events can reduce taxes, align with long-term goals, and create lasting impact. Charitable gifts made before or during a sale can significantly lower the capital gains tax bill, while still allowing the client to make meaningful gifts and reap the financial benefits of the sale.
Pre-sale planning is key — encouraging clients to contribute assets to a DAF, CRT, or CLT before a sale maximizes both tax benefits and philanthropic impact, and positions the advisor as a strategic partner in the client’s legacy, not just their transaction.
Estate planning and multi-generational philanthropy
Charitable giving plays a critical role in estate and wealth transfer strategies, providing both tax advantages and a meaningful legacy. DAFs can lower estate taxes by reducing the taxable value of the estate, while fostering multi-generational giving by involving heirs in charitable decision-making.
Engaging younger family members — particularly Millennials and Gen Z — in charitable giving is increasingly important, as these generations tend to be more focused on values-driven giving and want to be part of the decision-making process. Advisors can open this conversation by asking:
- How do you want your family’s values to shape future charitable endeavors?
- Are there causes your younger family members are passionate about?
- Would you like to involve your heirs in decision-making for your philanthropic legacy?
When to bring in charitable experts
Collaborating with specialists on complex gifts, advanced vehicles, or legal matters doesn’t diminish your expertise — it positions you as a strategic partner who knows when to bring in the right experts for the best outcome. Building a “philanthropy bench” of trusted partners who specialize in charitable giving empowers you to answer complex questions and deliver tailored solutions, and clients trust advisors who bring in the right experts at the right time.
How Ren supports you
Custodian-neutral
Keep your existing custodial relationships intact while offering comprehensive charitable solutions — Ren works with any custodian, so there’s no disruption to your process.
Investment-neutral
Maintain control over your clients’ portfolios. Ren’s platform is flexible, giving you the freedom to manage their investments the way you see fit.
No upfront fees on complex assets
Through Renaissance Charitable Foundation and Ren’s other partnering sponsoring charities, clients can contribute complex assets like business interests and real estate with no upfront due-diligence fees.
Turnkey solutions with expert support
Ren’s platform and partnering sponsoring charities handle the operational complexities — administration, compliance, and asset processing — so you can focus on serving your clients.
Ready to elevate your philanthropic offering?
You’re already providing great service to your clients — let’s make it exceptional. Reach out to our team to learn how Ren can help you deliver next-level philanthropic solutions that set you apart.
