The Psychology Behind Year-End Giving: How Philanthropy Shapes Wealth Management and Legacy Planning

As the year winds down, many individuals and families begin thinking more intentionally about charitable giving. For some, the motivation is rooted in tax strategy; for others, it is driven by gratitude, perspective and purpose. At Fratarcangeli Wealth Management, the intersection of those motivations is where charitable planning becomes most meaningful and effective.

Why High-Net-Worth Families Give: Perspective and Purpose

Across Fratarcangeli Wealth Management’s client base, one theme we see show up consistently: as individuals accumulate wealth, their motivations evolve. Many shift from focusing solely on growth to focusing on contribution. Experiences with families facing medical hardship, food insecurity or limited access to resources often reshape how clients view their own good fortune, and reinforce the desire to use wealth as a tool for impact.

For that reason, charitable giving is often not treated as a one-time event. We regularly work with clients who want philanthropy integrated thoughtfully into their overall strategy, so that giving becomes intentional and aligned with long-term goals, not simply a transaction completed in December.

Smart Planning Still Matters

Purpose may guide the decision to give, but efficient planning ensures the impact of those gifts is maximized. With legislative changes coming in 2026 that will alter rules around charitable deductions, the timing of donations plays a key role. Contributing to structures such as donor-advised funds allows individuals to take a deduction in the current year while deciding later where the funds will ultimately be granted.

This approach reflects a broader principle that defines the Fratarcangeli Wealth Management’s philosophy: align generosity with sound financial stewardship so that giving remains both purposeful and efficient.

Charitable Giving as a Legacy Strategy

For affluent families, philanthropy also serves as a long-term wealth and estate planning tool. Current law allows married couples to transfer roughly $30 million tax-free. Anything above that is taxed at 40%. Strategic lifetime giving or the establishment of a family foundation can help reduce exposure to future estate taxes while supporting causes that matter to the family.

Many families choose to involve their children in managing these foundations, turning charitable work into a long-term source of purpose and continuity. Done correctly, philanthropy becomes more than a tax strategy; it becomes part of the family identity, passed down across generations.

Intentional Giving Outperforms Reactive Giving

Although many donors act in December due to tax deadlines, the most meaningful and effective giving is planned earlier in the year. Those who think ahead are able to define their goals, research the organizations they care about and map out a giving approach that aligns with both personal values and broader wealth strategies.

A recurring trend we see at the firm: once individuals witness the real-world effects of their gifts, whether through visiting a children’s hospital, seeing programs funded firsthand or meeting families they have supported, their charitable engagement naturally expands. Philanthropy becomes less of an obligation and more of a defining element of who they are.

Giving Back Is Part of the Firm’s Culture

At Fratarcangeli Wealth Management, philanthropy is not just a topic discussed with clients; it is part of the firm’s fundamental values. The Fratarcangeli family is deeply involved with organizations such as the Humane Society and the Boys & Girls Clubs of Broward County, supporting fundraising, events and youth development initiatives.

The firm also played a significant role in establishing the Antonella Improta Memorial Foundation after a team member tragically lost his young daughter. The Foundation provides access to service animals for children with lifelong disabilities. As founding board chair, Jeffrey Fratarcangeli continues to help lead its fundraising and long-term sustainability.

These efforts reinforce a core belief that the fortunate carry a responsibility to give back. This principle is reflected in how we operate, serve clients and engage with the community.

Philanthropy as Part of a Broader Wealth Strategy

Year-end giving is about far more than meeting a deadline. It is an opportunity for individuals and families to connect their financial resources with their values, plan for tax and estate implications thoughtfully, and define the impact they want to leave behind.

At Fratarcangeli Wealth Management, charitable planning is a natural extension of the broader question that shapes every long-term plan: what do you want your wealth to mean, both today and for those who come after you?

Jeffrey Fratarcangeli and Fratarcangeli Wealth Management do not provide tax or legal advice.

Securities offered through Thurston Springer Financial, a registered Broker-Dealer (Member FINRA & SIPC). Investment advisory services offered through Thurston Springer Advisors, a SEC-Registered Investment Advisor. Insurance products offered through Thurston Springer Financial, an Indiana Insurance Agency.

The information contained herein constitutes general information and is not directed to, designed for, or individually tailored to, any particular investor or potential investor. This is not intended to be a client-specific suitability or best interest analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities.