Nearly $600 billion is donated to charitable causes each year in the United States. With the sunsetting of the Tax Cuts and Jobs Act (TCJA) on the horizon, the next 18 months could define your clients' philanthropic legacy for decades. Our whitepaper, Charitable Giving in Transition: Selecting the Best Strategy for Your Clients, explores how fintech is helping advisors maximize impact, efficiency, and tax advantages in a rapidly evolving landscape.
As fintech reshapes wealth management, it is key to empower advisors with more innovative tools to help clients maximize their philanthropic impact and tax advantages. Platforms like the SS&C Trust Suite offer solutions that make managing charitable giving strategies more efficient, transparent, and personalized.
The Role of Fintech in Modern Philanthropy
Managing charitable contributions has never been more complex or more important. Here’s how technology is helping advisors simplify the process and maximize their impact:
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Automated Donation Tracking & Reporting: Sophisticated fintech solutions enable real-time tracking of charitable contributions, ensuring proper documentation for tax purposes and optimizing deductions.
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Enhanced Donor-Advised Fund (DAF) Management: According to a 2023 report from the National Philanthropic Trust, DAFs remain a popular giving vehicle, with contributions surpassing $52 billion in 2022. Fintech platforms streamline DAF contributions, investment management, and disbursements, helping donors maximize impact and tax efficiency.
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Tax Optimization Tools: Platforms integrate tax intelligence features, allowing advisors to model different philanthropic strategies, such as bunching donations or leveraging highly appreciated assets for charitable contributions.
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Estate & Trust Integration: Fintech enables seamless coordination of charitable trusts, endowments, and estate planning, ensuring compliance with evolving tax laws and enhancing legacy planning strategies.
Navigating the TCJA Sunset with Fintech Solutions
The expiration of TCJA provisions on December 31, 2025 will significantly affect charitable giving and estate tax laws. With the standard deduction set to decrease, more taxpayers may itemize deductions, making charitable contributions more attractive. Meanwhile, the adjusted gross income (AGI) limit for charitable deductions is poised to revert from 60% to 50%, heightening the importance of strategic giving.
Advisors can leverage fintech to prepare clients for these changes by:
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Modeling Multi-Year Giving Strategies: Fintech-driven analytics can help investors determine the most tax-efficient ways to distribute donations over time, such as bunching several years' contributions into 2025.
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Automating Compliance & Reporting: Keeping up with regulatory requirements is critical as tax laws evolve. Fintech platforms generate automated reports that ensure compliance with IRS rules and enable data-driven guidance.
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Optimizing Asset-Based Donations: Many HNW investors prefer donating appreciated securities, real estate, or cryptocurrency to maximize tax benefits. Fintech platforms simplify the valuation, tracking, and transfer of these assets into charitable trusts or DAFs.
The Future of Fintech-Enabled Philanthropy
AI and machine learning are poised to enhance the philanthropic advisory process further. Predictive analytics can help advisors anticipate client-giving trends, identify optimal giving opportunities, and personalize recommendations based on an investor’s profile and goals.
Additionally, blockchain technology is improving the transparency and efficiency of charitable giving. Some fintech platforms now integrate blockchain to verify donations, track fund usage, and reduce fraud, helping ensure that contributions reach their intended recipients. According to a 2023 report by McKinsey & Company, blockchain-driven transparency can boost donor trust and increase charitable giving overall.
Preparing for the Future of Charitable Giving
The pending TCJA sunset represents a once-in-a-generation shift—and a rare window for strategic action. Advisors who move now will help clients maximize deductions and charitable impact before significant changes occur.
For a deeper dive into how fintech can help you navigate the evolving landscape of charitable giving and estate planning, Charitable Giving in Transition is essential reading.
Platforms like the SS&C Trust Suite empower advisors with data-driven insights, automation, and compliance tools that help clients make informed decisions while strengthening long-term relationships. By embracing fintech, advisors can transform philanthropy management, ensuring efficiency, transparency, and meaningful impact for years.
To learn how the SS&C Trust Suite, or other trust solutions from SS&C Innovest, can support your unique business needs, call (800) 727-0605 or email info@advent.com.
