Thankfulness, Generosity, and the Financial Joy of Giving

As Thanksgiving approaches, it’s natural to reflect on what we’re grateful for—and how we can share our blessings with others. At InTrust Advisors, we believe that thankfulness and generosity aren’t just virtues; they’re powerful tools for building a legacy and creating financial benefits for you and your loved ones.

The First Recorded Generous Giver
History is filled with stories of generosity, but one of the earliest comes from the Book of Acts in the Bible. Barnabas, known as “the son of encouragement,” sold a piece of land and gave the proceeds to support his community—no strings attached [1]. His gift wasn’t just financial; it was a statement of faith, hope, and unity. Barnabas’s legacy reminds us that giving is about more than money—it’s about making a lasting impact.

The Joy of Giving: More Than a Feeling
Research shows that giving—whether time, money, or resources—boosts happiness, strengthens relationships, and even improves health. But did you know that generosity can also be a smart financial strategy? When you give, you not only help others, but you can also unlock valuable tax benefits for both income and estate planning.

Tax Incentives for Charitable Giving
Here are some evergreen ways giving can benefit your financial plan:

• Income Tax Deductions: Gifts to qualified charities can be deducted from your taxable income, up to certain limits depending on nature of gift and the type of recipient. If you donate appreciated securities, you may avoid capital gains tax while still receiving a deduction for the full market value.
• Estate Tax Benefits: Charitable bequests reduce the size of your taxable estate, potentially lowering or eliminating estate taxes. There’s no limit to the estate tax charitable deduction—every dollar given to charity comes off the top of your estate.
• Donor-Advised Funds & Charitable Trusts: These vehicles allow you to give now, receive immediate tax benefits, and recommend grants to charities over time. Charitable remainder trusts can provide income to you or loved ones, with the remainder going to charity—offering both income and estate tax advantages.
• Qualified Charitable Distributions (QCDs): If you’re over 70½, you can donate directly from your IRA to charity, satisfying required minimum distributions and reducing taxable income—even if you don’t itemize deductions.

​Evergreen Strategies for Every Giver

• Bunching Donations: Combine several years’ worth of giving into one year to exceed the standard deduction and maximize your tax benefit.
• Gifting Appreciated Assets: Donate stocks, real estate, or other assets that have grown in value to avoid capital gains tax and receive a larger deduction.
• Naming Charities in Your Estate Plan: Leave a legacy by including charitable organizations as beneficiaries in your will, trust, or retirement accounts.

Thankfulness in Action
Generosity isn’t just for the wealthy—it’s for anyone who wants to make a difference. Whether you’re supporting a local food bank, funding scholarships, or helping your church, every gift counts. As we gather with loved ones this Thanksgiving, let’s celebrate the joy of giving and the lasting impact it can have on our families, our communities, and our financial futures.

If you’d like to explore how charitable giving can benefit your financial plan, estate, or taxes, schedule a Strategy Session with us. We’re here to help you turn thankfulness into a legacy.