Big Hair, Rhinestones, and Generosity

The big hair, the makeup, the nails, and the bedazzled wardrobe were all signature Dolly Parton. But she was so much more than rhinestones.

When Dolly passed in August, her estimated net worth was more than $450 million. But she never lived like someone trying to prove how much money she had. She drove an American-made car, lived in a suburb outside Nashville, and stayed true to herself despite worldwide fame.

She once said, “I always count my blessings more than I count my money.”

And she lived that way.

Throughout her lifetime, Dolly gave away millions of dollars and helped put books into the hands of children across the country through her Imagination Library program. Generosity was part of who she was.

For some, generosity is expressed through charitable organizations and causes they care about. For others, it means helping children and grandchildren with education, a first home, or other opportunities that can make a lasting difference. For many, it’s both.

My job is to help them give strategically so more of their resources can go toward the people and organizations they want to support.

In this article, we explore ways to give to charity more effectively.

Donor-Advised Funds

A donor-advised fund (DAF) can be a powerful tool for charitable giving while providing potential tax benefits.

Functioning like a charitable investment account, you contribute assets to the fund, may be eligible for a tax deduction in that year, and then recommend grants to qualified charities over time.

This vehicle can be especially useful during years when your income is higher than usual, such as after selling a business, receiving a large bonus, exercising stock options, or experiencing another major financial event. A family may choose to contribute a larger amount to a DAF during a high-income year.

For families who want to create a charitable legacy, a DAF can provide many of the benefits of a private foundation without the operational requirements and administrative responsibilities.

A DAF can also become a way to involve children and grandchildren in philanthropy. By including the next generation in grant decisions, families can teach the value of generosity and create conversations around using wealth to help others.

Bunching Your Giving

Many generous families give consistently year after year. But with the higher standard deduction, those annual gifts may not always provide a tax benefit.

For example, you give $15,000 every year, but if your itemized deductions do not exceed the standard deduction ($16,100 single/$32,200 married filing jointly in 2026), your charitable contributions wouldn’t have an effect on your return.

Bunching allows you to combine several years of giving into one tax year, often through a DAF, so you may be able to itemize deductions in that year while supporting your favorite charities over time.

The organization can still receive the same support; the difference is the timing of the tax deduction.

Another strategy is donating appreciated investments instead of cash. If you own investments that have grown, contributing those assets may allow you to avoid capital gains tax while still receiving a charitable deduction for the value of the gift.

Give From Your IRA With a Qualified Charitable Distribution

If you are 70½ or older and regularly give to charities, a qualified charitable distribution (QCD) may be a strategy to consider.

A QCD allows money to move directly from your IRA to a qualified charity. The distribution counts toward your required minimum distribution (RMD), but it is excluded from your taxable income.

For many retirees, this matters because charitable gifts made by writing a check may not provide a tax benefit when using the standard deduction.

A QCD can allow you to support a cause you care about while also managing your taxable income.

But be aware, the money must go directly from your IRA custodian to the charity, and the transaction must be completed by December 31.

Strategies From the Heart

Strategies like donor-advised funds, bunching charitable gifts, donating appreciated investments, and making qualified charitable distributions from an IRA may reduce the taxes you pay. And when you pay less in taxes, you may have more resources available to support the people, organizations, and causes you care about.

Rather than finding a tax loophole, the goal is to be a good steward of the wealth you have built and to help make as much of it as possible go toward creating impact.

The people I work with are often not the ones trying to show the world how much they have. They are supporting their communities and family, helping others, and making a difference without needing recognition.

Like Dolly Parton, they understand that wealth is about more than what you

accumulate; it’s also about what you can give.

Reach Out for a Conversation Anytime

Generosity is personal, and so is the best way to plan for it. If you'd like to talk through how any of these strategies might fit into your plan, reach out to your advisor at Spain & Smith Wealth Advisors. We're honored to help you give with intention.

About Dayna

Dayna Smith is a financial advisor and Investment Advisor Representative with Stratos Wealth Advisors at Spain & Smith Wealth Advisors in Pepper Pike, Ohio. She specializes in empowering individuals, families, and pre-retirees by crafting personalized, collaborative financial solutions aligned with their unique values and dreams. Based in the Cleveland area, Dayna holds a degree from Bowling Green State University and enjoys staying active, traveling, and spending time with her husband, Darrin, and their two young sons.

Frequently Asked Questions

Do I need to be wealthy to use a donor-advised fund?

No. A donor-advised fund is not only for families with private foundations or significant wealth. It can be a useful tool for anyone who wants to be more intentional with charitable giving. A DAF allows you to make a contribution, receive a potential tax benefit, and recommend grants to charities over time. For some families, it also becomes a way to involve children and grandchildren in conversations about generosity and stewardship. If you’d like more information, don’t hesitate to reach out to our team.

Should I donate cash or appreciated investments to charity?

Many people don’t realize they may have another option besides writing a check. If you own investments that have increased in value, donating appreciated assets may allow you to support a charity while avoiding capital gains taxes on the appreciation. This can make your charitable dollars go further because more of your gift reaches the organization you want to support.

How do I know if a QCD or bunching my charitable gifts makes sense for me?

The right strategy depends on your financial situation, income, tax deductions, and charitable goals. A qualified charitable distribution may be helpful for retirees who are required to take distributions from an IRA and want to support qualified charities. Bunching gifts may make sense for families whose annual charitable contributions do not exceed the standard deduction but could benefit from grouping several years of giving into one tax year. Working with your financial advisor can help you determine which approach aligns with your overall plan.

Investment advice offered through Stratos Wealth Advisors, LLC a Registered Investment Advisor. Stratos Wealth Advisors, LLC and Spain & Smith Wealth Advisors are separate entities. Neither Stratos nor Spain & Smith Wealth Advisors provides legal or tax advice. Please consult legal or tax professionals for specific information regarding your individual situation.