12 Tax-Smart Charitable Giving Tips for 2023

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Charitable planning is an important topic to discuss with your clients, especially if they’re facing extraordinary taxable events this year. You can add value to your clients by sharing these tax-smart giving strategies for 2023.

Why it’s important to discuss charitable giving

Despite the uncertainty around the pandemic and the economy, nearly 90% of affluent households continued to give to charity1 and bolstered charitable giving to historic levels over the last few years. Some of these generous individuals and families may have also received a larger tax bill for 2022 than expected, and they’re looking to advisors for guidance to reduce their tax exposure and maximize their charitable impact.

Since mitigating taxes is top-of-mind for many clients, tax season is a great time for you to initiate conversations about tax-effective giving strategies, especially if your clients are facing taxable events in 2023 like rebalancing portfolios, experiencing a large income year or a windfall, or considering a Roth conversion.

Moreover, persistent inflation and high interest rates in 2023 have driven up costs and negatively affected charities. As a result, taking an efficient, tax-smart approach to maximizing donor impact has never been more important.