Charitable Giving

At the heart of every act of charity lies a story—a reason for giving.

While some of us are moved by the plight of the less fortunate, others are inspired to share the fruits of their success. Institutions dedicated to art, science, and education often thrive on these generous contributions, echoing the community’s gratitude and individuals’ desire to leave an indelible mark.

Tax incentives for charitable giving

In recognizing the profound impact of philanthropy, our tax code is designed to reward those with a giving heart. Not only can you avail of tax deductions for your benevolent actions today, but for estate owners, charitable donations can also be a strategic move to minimize future estate taxes.

What we can offer

Imagine transferring an asset but still enjoying the income it yields. This is the essence of a charitable remainder trust. Not only does the asset serve as a lasting legacy (the “remainder”), but it can also qualify for current tax deductions when structured aptly. Delving deeper, there are three predominant types of remainder trusts:

  • Unitrust: Your income reflects a percentage of the trust asset’s current market valuation. With annual revaluation, your income may adjust accordingly.
  • Annuity trust: Break free from the variability. Opt for a fixed annual income, regardless of the asset’s market value.
  • Pooled income fund: Join hands with fellow donors and pool your assets in a charity-operated fund. Enjoy a share of the income, proportional to your contribution, for life.

Charitable lead trust (income trust)

Sometimes, the script is flipped. Instead of enjoying the income, you may assign the income rights to your chosen charity for a set duration. Known as an income trust, the remainder is rightfully yours at the end of the specified period.

Essential considerations in charitable planning

While rewarding, the journey of charitable planning is paved with intricate tax intricacies. We highly recommend discussing your plans with a seasoned tax or financial professional to ensure every move is tax-efficient and aligned with your objectives


Charitable giving is more than a financial transaction; it’s a testament to one’s values and vision for a better world. At Next Step Wealth Strategies, we guide you at every step, ensuring your charitable endeavors are both impactful and personally fulfilling.