On Day 3 of the Onchain Giving Summit hosted by Endaoment, Bespoke founder Matt McClintock speaks to Adam Blumberg, Bespoke Client Services Associate and co-founder of Interaxis, about the importance of incorporating philanthropy into estate planning.

Navigating the intersection of charitable giving and tax planning can unlock significant financial and philanthropic opportunities. Whether you’re looking to maximize your tax benefits, manage appreciated assets, or support causes you care about, various strategies can enhance both your financial plan and charitable impact.

Maximizing Tax Benefits Through Charitable Giving in Estate Planning

Charitable giving is a powerful way to support causes you care about, and it can also play a key role in estate planning. Whether making outright gifts to family members or donating to charitable organizations, there are significant tax benefits available. For cash gifts to qualifying charities, you can deduct up to 60% of your adjusted gross income (AGI). Donations of property, such as real estate, offer deductions ranging from 20% to 50% of AGI, depending on the type of asset and charity. Thoughtful philanthropy not only helps others but can also create lasting tax advantages for your estate.

Navigating Charitable Donations of Cryptocurrency: Timing and Appraisals

When donating cryptocurrency or digital assets to charity, it’s essential to establish the value at the time of the gift. For tax deduction purposes, the gift must be supported by a qualified appraisal, just like any other donation. Fortunately, there are expert appraisers who specialize in valuing digital assets like Bitcoin, ensuring accurate reporting for charitable contributions.

Raise Your Charitable Impact with a Donor-Advised Fund

Donor-advised funds (DAFs) are a smart, flexible option for individuals looking to make large charitable gifts but aren’t yet sure where to direct the funds. After experiencing a major income tax event, many donors want to secure a significant charitable deduction without needing to decide immediately which charities to support. A DAF allows donors to contribute now, receive the tax benefit, and take their time selecting causes to fund later. It’s an ideal solution, especially when gifting non-traditional assets like cryptocurrency. With tools like DAFs, philanthropy becomes more adaptable, offering greater control and financial benefits for donors.

Leverage Charitable Lead Trusts for Tax Benefits and Future Generational Wealth

A charitable lead trust offers a strategic way to support charities while benefiting your heirs. By establishing this trust, you direct it to make fixed annual payments to a qualifying charity, such as a donor-advised fund or family foundation, for a specified term (e.g., 10 or 20 years). At the end of this period, any remaining trust assets transfer gift-tax-free to your chosen beneficiaries, like your children. Additionally, you can receive an upfront tax deduction based on the trust’s initial value. This setup not only supports charitable causes but also provides tax advantages and protects your heirs’ future interests.

Unlock Tax Benefits and Charitable Impact with a Charitable Remainder Trust

A Charitable Remainder Trust (CRT) is a savvy tool for managing appreciated assets like Bitcoin or ETH while supporting charitable causes. By transferring these assets into a CRT, you avoid immediate capital gains taxes when the trust sells them. Instead, you receive an income stream from the trust for a set period or for life. At the end of this term, the remaining assets go to your chosen charity. This strategy not only maximizes your charitable impact but also provides you with tax benefits and ongoing income, making it a powerful option for both philanthropy and financial planning.

This information is intended for general educational purposes only and should not be construed as legal or investment advice.