Turning wealth Into generosity: How business owners can create generational giving through Donor-Advised Funds
Published 10:28 am Monday, June 16, 2025
One of the greatest joys in my role as a Certified Financial Planner™ and Certified Kingdom Advisor® is guiding clients as they discover the deep satisfaction that comes from giving money away. That may sound counterintuitive in the financial world, but for me and many of the families I serve, giving is not a financial loss — it’s an investment in something eternal.
Whether you’ve recently sold a business, offloaded investment properties, or liquidated highly appreciated stocks, there is a strategic and deeply rewarding way to turn those gains into a powerful tool for purposeful generosity: the donor-advised fund, or DAF.
What Is a Donor-Advised Fund?
A donor-advised fund is a charitable giving account that allows individuals and families to make irrevocable contributions to a fund, receive an immediate tax deduction, and then recommend grants to qualified charities over time.
Think of it as a “giving checking account,” but with the added benefits of tax savings, investment growth, and the ability to involve your family in long-term stewardship.
When clients use Schwab Charitable — a DAF platform I trust and recommend — they receive access to excellent investment options, an intuitive portal for managing grants, and the flexibility to give on their terms. Whether it’s $5,000 or $5 million, every gift is a seed that can grow, compound, and bless others for years to come.
Why Use a DAF After a Business or Property Sale?
For many of my clients, the sale of a closely held business or highly appreciated real estate can trigger substantial capital gains taxes. That’s where a DAF becomes a game-changer.
If you contribute shares, property, or cash before the sale, you may avoid capital gains taxes on the donated portion while also receiving a charitable deduction for the fair market value of the gift. This creates an incredible opportunity to reduce your tax liability while immediately funding your long-term giving goals.
After the funds are inside the DAF, they can be invested — allowing your charitable dollars to grow tax-free. This growth can then support greater and more sustained giving over the years.
A Real-Life Example: Kevin and Sarah
Let me share a story (with names changed for privacy) that illustrates the beauty of this strategy.
Kevin and Sarah owned a successful landscaping business in Florida. After 30 years of hard work, they decided to sell for $3.5 million. We sat down before the sale and discussed their goals — not just for retirement, but for giving. They’d always supported their church and a local ministry that provides housing for foster youth, but they had never given in a structured or planned way.
By contributing $300,000 of their ownership interest into a Schwab donor-advised fund before the sale, Kevin and Sarah:
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Avoided capital gains tax on that portion of the sale
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Received a significant charitable deduction in the year of the gift
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Created a giving fund that could be used year after year
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Involved their children in recommending grants — planting seeds of generosity in the next generation
Now, every year, they meet with their children to discuss where to give from their DAF. It has become more than a tax strategy — it’s a family discipleship opportunity.
Creating a Legacy of Generosity
The beauty of a DAF is that it’s not just about today — it’s about tomorrow. With proper planning, your giving fund can become a lasting legacy.
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You can name successor advisors, allowing your children or grandchildren to continue making grants in your honor.
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You can establish giving rhythms, such as annual grants to favorite ministries or emergency response efforts.
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You can even build this into your estate plan, ensuring a portion of your wealth continues to support kingdom causes long after you’re gone.
This is not just financial planning — it’s legacy stewardship.
Why I Use Schwab Charitable
At Rosenberg Alvis Ambrose Wealth Management, we partner with Schwab Charitable because of their commitment to excellence, flexibility, and low fees. They offer:
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A broad array of investment pools for charitable assets
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Easy-to-use online grant recommendation tools
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Integration with your broader wealth strategy
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Full transparency and reporting
It allows us to give generously, strategically, and with confidence.
Let’s Talk About Your Giving Strategy
If you’re planning to sell your business, real estate, or investments — or if you’ve recently had a significant financial event — let’s have a conversation about how we can align your financial goals with your heart for giving.
It’s one thing to be successful. It’s another to be significant. And few things are more significant than changing lives through generosity.
Let’s work together to create a giving strategy that will impact generations to come.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2023 FMG Suite.
This article was provided by Philip J Ambrose, CFP®
CERTIFIED FINANCIAL PLANNER™
Rosenberg Alvis & Ambrose Wealth Management
(229) 702 6100
312 N. Broad Street
Thomasville, GA 31792
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1876- B Eider Ct.
Tallahassee, FL 32308
www.raawealthmgmt.com
