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Charitable Planning

Charitable Planning

Charitable contributions can support the charities and causes you believe in while also potentially providing significant tax benefits to the donor.


Planned giving entails more than outright donations to charities; it is the process of matching a Donor's charitable interests and intent with the proper financial tools and techniques. Provo Financial will work with your estate planning attorney to determine a favorable vehicle to implement your wishes. While by no means an exhaustive review of charitable strategies, below are some concepts that have helped our clients support the causes important to them.

Charitable Remainder Trust (CRT) - an irrevocable agreement in which a donor transfers assets to a trust in exchange for an income interest. A qualified CRT is exempt from income tax, allows the donor to claim an income tax charitable deduction, permits the tax-free sale of appreciated assets and irrevocably designates the remainder for the benefit of one or more charitable beneficiaries, including public charities, donor-advised funds, and private foundations.

Donor Advised Fund - a charitable giving vehicle administered by a third party and created for the purpose of managing charitable donations on behalf of an organization, family, or individual. It can be an easy-to-establish, low cost, flexible vehicle for charitable giving as an alternative to direct giving or creating a private foundation.

Private Foundation – a legal entity set up by an individual, a family or a group of individuals, for a purpose such as philanthropy or estate planning. Private Foundations will create additional legal, accounting, and operational costs. The IRS requirements, fiduciary responsibility, public nature of its tax filings, and operational costs make Private Foundations a solution ideal only for those with substantial assets.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.