If you’re considering how to make your charitable giving more impactful while achieving financial benefits, Synchrony Charitable Wealth Planning offers the tools and guidance to help you succeed. Here’s a step-by-step guide to understanding their services and how to use them for your unique goals.
Step 1: Define Your Philanthropic Goals
Before diving into charitable strategies, ask yourself:
- What causes are most meaningful to me?
- Do I want to make a one-time impact or create a lasting legacy?
- How much flexibility do I need in my giving?
Synchrony helps you align your personal values with structured giving plans, ensuring every contribution makes a difference.
Step 2: Choose the Right Charitable Tools
Donor-Advised Funds (DAFs)
DAFs are ideal for those seeking flexibility in giving:
- How it works: Contribute cash, stocks, or real estate to a fund, receive an immediate tax deduction, and recommend grants to charities over time.
- Why choose it? It simplifies giving and allows you to invest the fund for growth.
Charitable Trusts
For donors planning larger gifts or looking for dual benefits:
- Charitable Remainder Trusts (CRTs): Provide a steady income and leave remaining assets to a charity.
- Charitable Lead Trusts (CLTs): Offer charities income first, with assets eventually passing to your heirs.
Private Foundations
If you want more control over how funds are distributed:
- Foundations allow personalized grant-making and ongoing family involvement.
- Synchrony manages the complex setup and administration for you.
Step 3: Maximize Tax Benefits
Synchrony’s charitable planning ensures your contributions are tax-efficient:
- Avoid Capital Gains Tax: Donate appreciated assets to eliminate taxes on their growth.
- Income Tax Deductions: Claim deductions for up to 60% of your Adjusted Gross Income (AGI) for cash gifts or 30% for appreciated securities.
- Reduce Estate Taxes: By allocating assets to charitable causes, you can significantly lower estate taxes.
Step 4: Build a Lasting Legacy
Synchrony helps you create a philanthropic legacy that lasts for generations:
- Family Engagement: Involve family members in charitable decisions to pass on your values.
- Transparent Reporting: Track the impact of your donations with clear reports and assessments.
- Sustained Impact: Tools like annual giving programs and endowments ensure long-term benefits for your chosen causes.
Step 5: Measure the Impact of Your Giving
Synchrony offers:
- Impact Assessments: See how your funds are used and the results achieved.
- Grant-Matching Tools: Double your impact by matching your contributions with corporate or community programs.
FAQs for First-Time Users
Who should use Synchrony Charitable Wealth Planning?
High-net-worth individuals, families, or businesses aiming to give strategically.
What if I already have a financial planner?
Synchrony works seamlessly with your existing financial team to integrate philanthropy into your broader goals.
How much does it cost?
Costs vary depending on the tools and services you choose. Synchrony provides transparent pricing.
Can I use Synchrony’s services if I’m not a high-net-worth individual?
Yes, Synchrony offers solutions tailored to various financial levels. Donor-Advised Funds (DAFs), for instance, are accessible for donors with smaller contributions while still providing flexibility and tax benefits.
Are there minimum contribution requirements for Donor-Advised Funds?
Yes, most DAFs have minimum initial contributions, which vary depending on the provider. Synchrony typically requires an initial amount, but this is competitive and designed to accommodate a wide range of donors.
How does Synchrony ensure my donations reach the intended beneficiaries?
Synchrony uses transparent processes to vet charitable organizations and track the allocation of funds. Regular impact reports are shared with donors to ensure accountability.
Can Synchrony help me support international charities?
Yes, Synchrony provides options to contribute to international organizations, ensuring compliance with tax laws and regulations while facilitating global impact.
Why Choose Synchrony?
Synchrony offers personalized, easy-to-understand solutions for even the most complex financial scenarios. With a focus on transparency, tax efficiency, and long-term impact, they help you turn charitable intentions into actionable plans.
Conclusion
Synchrony Charitable Wealth Planning is more than a service—it’s a partnership to make your giving impactful, tax-efficient, and aligned with your values. Whether you’re setting up a Donor-Advised Fund, exploring charitable trusts, or planning your estate, Synchrony provides the expertise to maximize benefits for you and your chosen causes.
