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Women, wealth and the power of strategic giving

Three ways to help you make the most of your giving

Women are playing a rapidly expanding role in shaping the future of philanthropy, as their financial influence rises more quickly than ever before. Many will become the sole financial decision maker at some point in their lives, whether through earnings growth, business ownership, inheritance or divorce.

With this shift comes a distinct approach to giving, deeply tied to personal experience, purpose, and long-term impact.

Here are three smart strategies to help make your charitable giving more impactful and aligned with your long-term goals.

1. Donate appreciated securities for maximum tax efficiency

One of the most effective ways to give is by donating publicly traded securities directly to a charity.

Why this strategy works:

  • The charity receives the full market value of the investment
  • The donor receives a tax receipt for the same amount
  • If the securities have gone up in value, capital gains tax does not apply

For individuals with corporations, donating from their company can provide an additional advantage.   When a corporation makes a donation of publicly traded securities, the capital gain on those securities is eliminated but still gets tracked in an account called a capital dividend account. Dividends up to the value in this notional account can be distributed to shareholders as tax-free capital dividends.

Insight: If you hold investments with significant unrealized gains, this strategy may provide one of the highest after tax benefits available.

2. Consider a donor-advised fund (DAF) for flexible, lowmaintenance giving

A donor-advised fund (DAF) is an endowment fund (or a vehicle for giving) opened with an independent public charity. Think of it as a charitable investment account at the charity. It’s like having your own charitable private foundation without all the extra work required. Some of the benefits include:

  • A DAF can typically be started with a relatively modest contribution
  • Funds can grow tax-free over time through investment
  • Donors can choose where to direct grants at their own pace as long as a minimum of 5% per year of the value of the fund is distributed to qualified charities.

DAFs are ideal for those who want to take advantage of the tax benefit now while taking time to decide which charities to support. It’s also an excellent tool for teaching younger family members about philanthropy by creating a structured, ongoing way to make giving a shared, values-based family discussion.

3. Explore a private foundation for long-term family legacy

For families with larger pools of wealth, setting up a private foundation can be an enduring structure for multigenerational giving. But you should be aware that this usually involves a longer, and more costly process of creating a not-for-profit corporation and applying for charitable registration. Foundations can:

  • Build a long-term philanthropic legacy
  • Engage family members in leadership roles
  • Formalize your shared mission and values

Insight: Private foundations work best when aligned with a family’s long-term wealth vision.

Building a giving strategy that reflects your values

Strategic philanthropy isn’t just about supporting meaningful causes, it’s also a way to create impact, strengthen family connections, and enhance your overall wealth plan. With the right approach, your giving can reflect both who you are today and the legacy you want to leave.

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