Philanthropy after Divorce: Thoughtful Ways to Give with Purpose
Divorce is a moment of transition, and an opportunity to reassess what matters most. Explore five tax-smart philanthropic strategies that can make a lasting impact.
Major life changes often prompt a reassessment of financial, personal and even philanthropic priorities. Divorce is no exception. Whether charitable giving was a shared pursuit during your marriage or a new interest you’re now exploring independently, philanthropy can play a meaningful role in this next chapter.
Many people think of giving simply as writing a check or making an online donation. While cash gifts remain common, there are several strategic ways to give that may offer benefits beyond a basic tax deduction. For individuals navigating divorce, these approaches can help manage new tax realities, preserve wealth and create a sense of purpose during a period of transition.
Below are five strategic giving options to consider, along with specific considerations for those who have recently gone through a divorce.
1. Donating appreciated securities
Donating appreciated securities, such as stocks, mutual funds or exchange-traded funds (ETFs), allows you to give assets directly to a charitable organization instead of cash. Most charities can accept these assets in kind and sell them tax-free.
This strategy can be particularly tax-efficient. Rather than selling the investment yourself and paying capital gains tax on the appreciation, you may be able to avoid that tax altogether while the charity receives the full value of your gift.
Divorce consideration:
If investment accounts were divided during your divorce, review which assets carry the highest unrealized gains. Donating those positions can help reduce future tax exposure and rebalance your portfolio if your risk tolerance or objectives have shifted.
2. Qualified charitable distributions (QCDs)
If you are age 70½ or older, you can make a qualified charitable distribution directly from your IRA to a qualified charity. In 2026, QCDs are allowed, up to $111,000 per year.1 These distributions are excluded from taxable income and can count toward satisfying required minimum distributions (RMDs), if applicable.
Divorce consideration:
If retirement assets were split as part of your settlement, your RMD obligations may look different than they did previously. QCDs can still be an effective way to manage taxable income, particularly if your divorce altered your tax bracket or income sources.
3. Donor-Advised Funds (DAFs)
A Donor-Advised Fund is a charitable account established at a sponsoring institution. Contributions to a DAF are considered irrevocable gifts to charity, allowing you to receive an immediate tax deduction. However, you can recommend grants to charitable organizations over time.
DAFs are often funded with appreciated securities, combining the tax benefits of capital gains avoidance with flexible, long-term charitable planning.
Divorce consideration:
If you experienced a one-time income event, such as proceeds from a home sale, business transaction, or portfolio restructuring, a DAF can help offset the associated tax impact while giving you time to thoughtfully define your philanthropic goals in this new phase of life.
4. Charitable bequests and estate planning
Including charitable organizations in your estate plan allows you to extend your impact beyond your lifetime. Charitable bequests can be structured in several ways, including naming charities as beneficiaries of trusts or accounts. From a tax perspective, pre-tax retirement accounts are often especially well suited for charitable beneficiaries, since charities generally do not pay income tax on these assets.
Divorce consideration:
Divorce is a critical moment to revisit and update estate planning documents. This includes reviewing beneficiary designations and considering whether charitable giving aligns with your revised goals. For some families, it can also be an opportunity to engage children in conversations about values and legacy during a time of change.
5. Giving time and talent
Philanthropy isn’t limited to financial contributions. Volunteering your time, expertise or professional skills can create immediate impact and personal fulfillment.
Divorce consideration:
Volunteering can help rebuild community connections and provide structure and purpose after divorce. Mentoring, pro bono professional work or supporting causes that resonate with your personal journey can be especially meaningful during periods of transition.
Divorce brings both financial and emotional complexity, but it can also create space for intentional decision-making. By thoughtfully using strategies such as appreciated securities, QCDs, DAFs and charitable estate planning, you can align giving with your evolving goals while potentially enhancing tax efficiency.
Whether through financial resources, time or expertise, philanthropy can be a powerful way to transform a challenging life transition into an opportunity for lasting impact.
ABOUT THE AUTHOR
Baili Roy
Baili is a Wealth Advisor in our Chicago office and a leader of the National Divorce Practice Group (DPG). Her work with the DPG focuses on helping prospects and clients navigate the complexities of divorce, as well as facilitating heathy conversations about money pre and post marriage, with blended families, second marriages, and more. Previously, she served as a senior advisor at legacy firm Balasa Dinverno Foltz. Baili completed her Bachelor of Science at the University of Illinois at Urbana Champaign with a concentration in financial planning. She holds a CERTIFIED FINANCIAL PLANNER® designation and is a Certified Divorce Financial Analyst® professional.
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5111849 – January 2026
