Philanthropy, Charitable Trusts and Giving Strategies for High-Net-Worth Retirees

The holidays are a time for sharing abundance. Philanthropy and charitable giving can reflect personal values, benefit future generations, and offer substantial financial benefits. For high-net-worth (HNW) retirees who make charitable donations during the giving season and throughout the year, tax-smart tools like donor-advised funds (DAFs), charitable remainder trusts (CRTs), and gifts of appreciated assets can help create a lasting legacy. These vehicles offer flexible and efficient options to help benefactors align their generosity with their long-term goals.

Donor-Advised Funds (DAFs)

A DAF allows a donor to contribute assets now, take an immediate deduction, and recommend grants over time. These funds have become increasingly popular. At the end of 2024, there were nearly 1.7 million DAF accounts in the U.S., holding over $251 billion in assets. The figures, based on the 2023 fiscal year, showed a 10% growth over 2022.

DAFs accept a variety of assets, including publicly traded stock, real estate, and cryptocurrency. This flexibility allows donors to avoid capital gains tax when contributing appreciated property. Once the assets are in the fund, they may grow tax-free, and donors can recommend distributions to charities over years or even decades.

The DAF structure gives retirees control over the timing of their gifts and allows them to shift their priorities as their philanthropic goals evolve.

Charitable Remainder Trusts (CRTs)

A CRT offers a way to convert appreciated property into a reliable income stream while benefiting a charity in the long term. Fundamentally, an individual transfers concentrated stock holdings, real estate, private equity, or other assets into a trust. The trust then pays the donor (or the designee) a fixed percentage each year, recalculated annually.

Because CRTs are tax-exempt entities, when the trust sells appreciated assets for donation, capital gains tax is not immediately applicable. The full value of the asset remains invested, generating more income for the donor. The donor also receives a charitable income tax deduction based on the present value of the charitable remainder (the portion that eventually goes to charity).

At the close of the trust’s term, which can span a lifetime or a specified period, the remaining assets go to the non-profit beneficiary. Because donated assets are not part of the donor’s taxable estate, CRTs also help reduce estate tax exposure. That said, beneficiaries may recognize capital gains tax through a CRT’s annual distributions.

Direct Gifting of Appreciated Assets

Donors who default to cash gifts can miss an opportunity, especially wealthy individuals with large holdings of appreciated securities. Giving stocks, mutual funds, or other investments directly can help donors avoid capital gains triggers and deliver maximum impact. These gifts permit an immediate deduction based on the fair market value of the asset, within IRS limits (typically up to 30% of adjusted gross income (AGI) for non-cash donations, with a five-year carry-forward of excess to subsequent tax years). Through this strategy, philanthropists can maximize both their financial leverage and charitable reach.

Aligning Giving with Multi-Generational Goals

In legacy planning for HNW retirees, philanthropy can bridge personal values and family continuity. DAFs and CRTs can include successor advisors, which enable children or grandchildren to participate in grant decisions. These vehicles also offer tax-efficient ways to reduce future estate taxes. Shifting significant assets into charitable trust structures allows individuals to remove those values from their taxable estate. The remaining benefit goes to a designated charity, thereby honoring their philanthropic vision.

Tax Efficiency in Light of Recent Changes

Recent tax law amendments make strategic gifting before the end of this year a wise choice. Effective January 1, 2026, a floor on charitable giving will apply. At that point, only contributions exceeding 0.5% of AGI will be deductible for itemizers. Additionally, the maximum deduction rate for top-bracket donors will be limited to 35% (currently 37% in 2025).

These changes heighten the value of pre-funding charitable strategies, such as making a larger contribution into a DAF before year-end or establishing a CRT now to secure favorable deduction terms.

Putting It All Together Through a Structured Planning Framework

HNW individuals can follow a clear three-step planning framework to integrate philanthropy into their broader financial life. Here’s how:

1. Define objectives: Identify personal, family, and charitable goals, such as income needs, legacy desires, and favored causes.
2. Select the right vehicle: Match the goals to the right structure. For example, a DAF for flexible giving, a CRT for income and legacy, or direct gifts for simplicity and tax optimization.
3. Review and adjust: Revisit the plan as tax laws, financial circumstances, or philanthropic priorities evolve.

Combining these strategies can yield powerful outcomes for the wealthy. A DAF provides simplicity and flexibility; a CRT adds income and estate efficiency, and gifts of appreciated assets deliver tax value. Together, these tools create a powerhouse that aligns current tax savings with meaningful legacy planning.

The season of giving is upon us, and the end of the year draws near. SHP Financial can help integrate giving strategies into an overarching financial plan grounded in its proven five-part Retirement Road Map. For a complimentary review of how philanthropic planning fits into a tailored retirement strategy, contact an SHP Financial advisor today.

more dynamic and unpredictable than ever. Many investors are asking if gold should have a place in their portfolios. With geopolitical tension, inflationary concerns, and questions around monetary policy, gold’s appeal as a safe-haven asset has surged. However, investors should think carefully before diving in, especially when planning for long-term goals such as retirement.

Why Gold is Gaining Attention

Gold is traditionally defined as a commodity, like oil or cotton. Increasingly, its unique characteristics are placing it in the alternative investment category. Gold has enjoyed a remarkable run in 2025. According to the World Gold Council, it rose nearly 26% in the first half of the year, closing out as one of the top-performing major asset classes.

Among the factors influencing this surge are:

• A weakening U.S. dollar has ushered more investors to gold.
• Expectations of future rate cuts from central banks and low real yields (return on investment after inflation) are reducing the opportunity cost of holding a non-yielding asset like gold.
• Geopolitical tensions and trade uncertainty are fueling demand.
• Central banks continue buying gold aggressively.

These forces have helped raise the price of gold above $4,000 per ounce in 2025. According to Gregory Shearer, head of Base and Precious Metals Strategy at J.P. Morgan, “For investors, we think gold remains one of the most optimal hedges for the unique combination of stagflation, recession, debasement, and U.S. policy risks facing markets in 2025 and 2026.”

What Gold Can and Can’t Do For You

Gold offers several potential benefits, but it also has real limitations, especially for long-horizon investors.

Strengths:

• Diversification: Gold has historically low correlation with stocks and bonds, helping to dampen volatility.
• Store of value: During times of crisis or currency instability, gold can preserve purchasing power.
• Strong institutional demand: With central banks continuing to accumulate, there is structural support for gold prices.

Risks and Trade-offs:

• No yield: Gold does not generate income. Unlike bonds or dividend-paying stocks, its value is entirely dependent on price appreciation.
• Volatility: Although gold is perceived as a safe asset, its price can swing significantly.
• Dollar risk: Because gold trades in U.S. dollars, a strong dollar could undermine gold’s value.
• Cost and logistics: Physical gold carries storage, security, and insurance costs.
• Sentiment-driven: When investor sentiment shifts, so can gold prices.

How to Think About Gold in Retirement Planning

For someone focused on long-term financial goals, such as retirement, it makes sense to think of gold as insurance, rather than a core growth engine. Here’s how to approach gold using a disciplined planning framework.

1. Be clear about the objective. An investor who wants gold to act as a shock absorber during periods of volatility or geopolitical stress should align the allocation with that specific purpose.
2. Choose exposure wisely. Investors may purchase physical gold or gain access through exchange-traded funds (ETFs) or trust products, which can reduce the burden of storage and security.
3. Don’t expect stock-like growth. Because gold doesn’t generate income, it offers less compounding than equities. However, it can provide capital when risk is high.
4. Monitor macro conditions. Investors should watch trends in interest rates, inflation, and central bank activity. Those dynamics heavily influence gold’s performance.
5. Incorporate gold into a broader risk management plan. Gold can serve as a buffer in “bucket” strategies: when risk assets fall, gold may help reinforce the “safety” bucket.

When Gold May Not Be Right for Certain Investors

Buying gold is not the best choice for every scenario. It may be less appealing in the following situations:

• Those who are pursuing high growth and already have strong equity exposure.
• Those who rely on fixed or dividend income to generate cash flow.
• Individuals who avoid non-yielding assets and prefer investments that compound.

Gold can be a compelling tool, especially for those wary of inflation, policy risk, and market turmoil. However, gold’s value stems from its ability to mitigate risk, rather than generating returns. As the tragic tale of King Midas warns, it’s not good for everything to be gold. This includes the assets in one’s portfolio.

If you’re thinking of adding gold to your portfolio, consider it a complement to equities and bonds (rather than a replacement). Balancing risk and opportunity is a nuanced exercise, so it’s wise to run your plans by a financial advisor who thinks about your portfolio and retirement plan holistically. The team at SHP Financial can help you explore whether a modest gold allocation aligns with your long-term goals. Schedule your complimentary financial review with an SHP Financial advisor today and discover how gold can fit into a disciplined, resilient retirement plan.