Charitable Planning

Considerations for Efficient Gifting

March 2025

Here at Cornerstone, we are blessed not only to have the opportunity to serve many non-profit clients but also to make philanthropy a core component of our organization’s culture. Our employee-owners are passionate about giving back to the community, and, through our Donor Advised Fund, we are proud to announce the recipients of our fourth annual Cornerstone Cares grant, which you can read about here. 

Suffice it to say, we believe in placing philanthropy at the forefront of our daily lives, and we know many of our clients feel the same. Therefore, it should come as no surprise that we are equally passionate about helping our clients – whether they are families and corporations providing philanthropic support or non-profits seeking to make the world a better place – to maximize the impact of charitable gifts and structure them as efficiently as possible.

While we are neither tax attorneys nor accountants, here are three ideas to consider when fulfilling your philanthropic goals. We look forward to having the opportunity to discuss these and other concepts with you and your tax advisors.

Donor Advised Funds (DAFs)
We’ve been writing about DAFs quite a bit lately, whether it’s in this comparison of DAFs and private foundations or in this Independent Insights about using the two vehicles together. DAFs are sponsored by many different providers, such as Schwab, Fidelity, Vanguard, and some non-profits. DAFs offer an opportunity for individuals to make a large contribution to a fund and receive tax benefits for charitable giving that they may not otherwise receive given higher standard deductions; thereafter, the individual may manage the distribution of those funds over the course of several years.

Qualified Charitable Distributions
If you are receiving required minimum distributions (RMDs) from your IRA, you likely know that these distributions are taxed as ordinary income on your tax return. But did you know that you can direct your RMD (up to a 2025 limit of $108,000) each year to a qualified charity? The income is diverted directly from your tax return to a charity of your choice. And, while we are on the subject of IRAs, don’t forget that you can make a charity the beneficiary of some or all of your retirement account. 

Gifting Appreciated Assets
If you are the owner of a security that has gone up in value, selling that asset in a brokerage account will trigger a taxable capital gain. Instead of liquidating the asset, you can donate it to a charity and receive a charitable deduction for its market value while avoiding the capital gains tax, with some limitations. In addition, if you desire to retain exposure to that asset, you can repurchase it at its current higher cost basis.  

In closing, if you are considering a charitable contribution to support an organization close to your heart, pause before you reach for your checkbook and consider whether there is a more efficient vehicle you can use to help those in need. Cornerstone’s Philanthropic Services team stands ready to help should you have questions regarding your options for charitable giving. 

Securities Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer, Member FINRA/SIPC. Investment Advisory Services are offered through Cornerstone Advisors Asset Management, LLC. Cornerstone Advisors Asset Management, LLC and Cornerstone Institutional Investors, LLC are independently owned and operated. Cornerstone Institutional Investors, LLC is a member of M Financial Group. Please go to mfin.com/Disclosure for further details regarding this relationship. For important information related to M Securities, refer to the M Securities’ Client Relationship Summary (Form CRS) by navigating to mfin.com/m-securities.

This report was prepared by Cornerstone Advisors Asset Management, LLC / Cornerstone Institutional Investors, LLC and reflects the current opinion of the firm, which may change without further notice. This report is for informational purposes only and is not intended to replace the advice of a qualified professional. Nothing contained herein should be considered as investment advice or a recommendation or solicitation for the purchase or sale of any security or other investment. Opinions contained herein should not be interpreted as a forecast of future events or a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s portfolio. Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark. 7751039.1