Giving While Living: The Benefits of Charitable Gifts During Your Lifetime

Many people plan to leave charitable bequests in their will. It's a meaningful gesture — but it may not be the most strategic approach. Giving during your lifetime often produces greater impact, greater satisfaction, and greater tax benefits than giving at death.

Why give now rather than at death?

You see the impact. A gift made during your lifetime lets you witness the difference it makes — a scholarship awarded, a building constructed, a program funded. This is something a bequest simply can't offer.

Income tax deductions. Charitable gifts made during your lifetime generate an income tax deduction (subject to AGI limitations). A bequest at death reduces your estate — but only if your estate is large enough to owe estate tax do you get any tax benefit.

Appreciated assets. If you donate appreciated stock or real estate directly to a charity rather than selling it first, you avoid capital gains tax on the appreciation and still receive a deduction for the full fair market value. This is one of the most tax-efficient ways to give.

Donor-advised funds. You can make a large charitable contribution in a high-income year, receive the deduction immediately, and then distribute the funds to specific charities over time — letting you separate the financial decision from the charitable decision.

Qualified Charitable Distributions (QCDs). If you're 70½ or older, you can transfer up to $105,000 per year directly from your IRA to a charity. The distribution counts toward your required minimum distribution but is excluded from taxable income — a significant benefit for retirees who don't need the IRA funds for living expenses.

📌 Charitable giving during your lifetime can be more powerful — and more rewarding — than leaving a bequest. Let's explore the strategies that align with your values and your tax situation.