Focus first on goals and values, instead of taxes.

In making a business or investment decision, most people identify their goals first and then explore tax-efficient ways to meet those goals.  Yet, in our experience, this process is usually reversed in planning to give money away, rather than make it.

In planning their giving, individuals in the U.S. often give foremost attention to saving taxes – charitable remainder trusts for income tax saving, charitable lead trusts for estate and gift tax saving, and private foundations for saving taxes across generations.  The selection of less common alternatives, such as a support organization or donor-advised fund, is often made to achieve greater tax benefits, and not to gain the intangible benefits that those alternatives can provide.  This tendency to give priority to tax issues mistakenly puts the means before the ends.  It prematurely narrows the pathway of productive thinking.

Make goals your first priority, then ways and means.  Start by asking questions.