The most meaningful philanthropy starts with a clear ‘why.’ For wealth holders, aligning giving with personal values and long-term vision is essential— not optional. This two-part series offers a blueprint for effective, values-driven philanthropy. In this first installment, we help you define what matters and where to begin. The second, “How to Structure Your Charitable Giving“, will provide a more detailed outline of various types of giving structures and alternative assets that can be gifted.

Identify Your Passion Causes

Some individuals come to us with fully formed views on philanthropy. Others have no idea how they should start their philanthropic journey. For this latter group in particular, the conversation often starts with the following question:

“Assuming a perfect world without limitation, what causes are you passionate about?”

Once you’ve defined these core causes, the question then becomes, “how can you best connect your philanthropy to these causes?”

Unsurprisingly, many individuals have limiting beliefs about their ability to make an impact on the causes they care about. These beliefs include thoughts like: my cause is too large or, conversely, my cause is too small; I don’t have the resources to impact my cause; my cause is too difficult to impact; impacting my cause requires disclosing my identity; etc.

In some cases, these limiting beliefs may reflect objective challenges, but more often, they are based on subjective perceptions. For example, one of our clients is deeply passionate about addressing racial and gender inequality, two massive issues that seem insurmountable, even with unlimited resources. However, through several conversations with various experts, the client learned that human trafficking is a socio-economic issue that disproportionately impacts women and people of color. This insight lead the client to address human trafficking in a particular region close to home by funding a center for victims of human trafficking. Today, that center serves a significant numbers of victims daily, making a meaningful impact on the community.

Another client couple is passionate about their church, a relatively small denomination with diocese in only a handful of U.S. cities. Given the small size of this church, the clients require absolute anonymity in making large contributions to their church. Through the assistance of a philanthropy consultant, we ensured total anonymity with their contributions. Further, after numerous conversations we determined that multiple smaller contributions over many years would likely have a much greater impact than a fewer number of large contributions, given the relatively small size of the endowment – and vision – of the church.

Once we align the client’s passion causes with potential philanthropy, we then explore the many ways in which the client can approach that philanthropy from a structural perspective. The first question is, are there charities that are addressing this cause, or does the client need to create a charity to address it? From there, we discuss various types of private foundations and their best use case to fit the client’s objectives.

Private Foundations Generally

At the risk of oversimplifying, there are three general classifications of private foundations: 1) private non-conduit, non-operating foundations, 2) private “conduit” foundations, and 3) private operating foundations. Of these, conduit and operating foundations enjoy many of the same benefits that public charities provide. Non-operating, non-conduit private foundations provide lower levels of deductibility and are subject to additional layers of tax at the entity level.

Private foundations are an excellent tool for managing the family’s philanthropy and incorporating younger family members into family wealth decision making. It should be noted, however, that private foundations are complex with significant regulations and administrative costs, and they are therefore not right for every family.

Ways to Give: Cash and Appreciated Asset Contributions

Cash contributions provide the immediate liquidity to fund charitable operations and thus are vital to many charities. Cash contributions also provide the highest level of deductibility against your adjusted gross income. However, there are other ways you can give . . . which may be advantageous to you from a tax perspective and may allow you to incorporate giving to your passion causes as part of your estate planning.

Rather than donating cash or a check, consider contributing appreciated assets such as marketable securities, which include stocks, bonds or certificates of deposit. Contributing appreciated assets provides additional flexibility and tax advantages when implemented within the correct structure.

Conclusion

A meaningful philanthropic journey begins with clarity of purpose—identifying the causes that matter most and aligning them with a strategy for impact. From there, the focus shifts to execution: how to channel resources effectively, and which vehicles— whether foundations, trusts, or donor-advised funds— are best suited to achieve that impact. This is typically an iterative process that sometimes takes place over many conversations, often over several months or longer. Further, one’s philanthropy is not static and may evolve and/or expand over time.

In this way, philanthropy can not only produce a significant impact, but it can provide tremendous meaning to those who engage in it. Many of our clients find unending joy knowing that they are truly making a difference. At The Bespoke Group, we take great pride in helping individuals and families find this joy.

If you’re interested in learning more, please read “How to Structure Your Charitable Giving” where we break down different types of foundations and trust structures, and how to identify what structure will best serve your values and philanthropic goals.

If you’re interested in learning more about Bespoke’s approach to private wealth management and how we can help you build a secure financial future, we invite you to reach out to us directly. We’d be happy to set up a confidential consultation at your convenience.

Thank you for considering Bespoke as your partner in wealth management. We look forward to the opportunity to work with you.

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