Trends in Charitable Giving – Pierson Wealth Management

According to the most recent report by Giving USA, Americans gave $499 billion to charity in 2022.¹ People typically give for two main reasons: to support causes they care about and to leave a meaningful legacy.
When donating, some individuals choose simple cash gifts, while others explore strategies that may enhance both their impact and potential tax benefits.
Direct gifts are donations made directly to qualified charitable organizations. Normally these contributions may be tax-deductible.
Charitable gift annuities allow donors to contribute assets such as cash, securities, or real estate in exchange for a fixed income stream. After the donor’s lifetime, the remaining assets go to the charity, offering both income and philanthropic impact.
Pooled-income funds combine donations from multiple contributors into an invested fund. Donors receive income based on their share, while the remaining assets support the charity.
Charitable trusts pay income to the donor or beneficiaries before passing assets to charity, while a charitable lead trust distributes income to the charity first, with remaining assets going to heirs.
Donor-advised funds (DAFs) allow donors to make irrevocable contributions, potentially receive an immediate tax benefit, and recommend grants to charities over time.
While some individuals prefer simple giving methods, others may benefit from more strategic approaches. A financial professional can help evaluate which options align with your goals.
This information is not intended as tax or legal advice. Please consult a qualified professional regarding your specific situation.
Advisory services offered by Investment Advisory Representatives of RFG Advisory, LLC (“RFG Advisory” or “RFG”), a registered investment advisor. Pierson Wealth Management, Private Client Services and RFG Advisory are unaffiliated entities. Advisory services are only offered to clients or prospective clients where RFG Advisory and its representatives are properly licensed or exempt from licensure.
¹GivingUSA.org, 2023