Generosity as a Wealth Strategy

What if the smartest thing you could do with your wealth... was give some of it away?

At Arkos, we believe generosity isn't just an act of kindness—it's a powerful strategy that transforms your outlook, impacts your community, and can meaningfully reduce your tax burden. In a world focused on accumulation, the most fulfilled professionals we work with are those who lead with purpose—and purpose often starts with giving.

🙏 1. The Spiritual Impact: Generosity Anchors Purpose

The most ancient wisdom traditions—from Christianity to Stoicism to Buddhism—teach the principle that we’re stewards, not owners.

For those who follow a faith perspective, generosity is a tangible expression of gratitude and trust. Scripture often points to giving as a way to reorient the heart:

“Where your treasure is, there your heart will be also.” – Matthew 6:21

When you incorporate giving into your financial plan, you reframe wealth as a tool—not a master. This mindset shift frees people from anxiety, comparison, and fear. It opens the door to contentment and purpose.

🧠 2. The Emotional Impact: Giving Builds Freedom, Not Scarcity

You might expect giving money away to feel stressful. But studies consistently show the opposite.

According to a 2018 study by the Greater Good Science Center at UC Berkeley, individuals who gave generously reported significantly higher levels of life satisfaction and lower levels of depression than those who did not.

A Harvard Business School study found that spending money on others increased happiness more than spending on oneself—regardless of income level. (HBS, 2008)

In our work with high-income professionals, the common denominator isn’t how much they give—it’s how consistently and intentionally they give.

Generosity calms financial anxiety by shifting the focus from scarcity to abundance.

💰 3. The Financial Impact: Your Wealth Strategy Gets Sharper

Generosity isn’t just feel-good—it sharpens your entire wealth strategy.

Why? Because giving requires clarity. It forces questions like:

• How much is enough?

• What do I value?

• What kind of legacy do I want to leave?

These questions create healthier boundaries around spending, drive intentional saving, and accelerate purpose-filled investing. In short, generosity makes you a better steward of all your wealth.

🧾 4. The Tax Impact: Giving Reduces Your Tax Bill

Generosity can be a highly efficient tax strategy—especially for those with high income, equity compensation, or investment gains.

Here are three powerful tools:

1. Donor-Advised Funds (DAFs)

DAFs let you give appreciated assets (like stock or crypto), avoid capital gains, and get a full deduction—then distribute the funds over time.

Benefits:

• • Immediate deduction in a high-income year

  • Simpler than setting up a private foundation

  • Encourages long-term giving strategy

  2.  Gifting Appreciated Assets Instead of Cash

Donating appreciated stock directly to a nonprofit avoids the capital gains tax and lets you deduct the fair market value.

Example:

• • Give $100K in highly appreciated, long term stock

  • Avoid $20K+ in capital gains

  • Still deduct the full $100K

  3.  Qualified Charitable Distributions (QCDs)

If you’re over 70½, you can donate directly from your IRA—reducing your taxable income and satisfying your Required Minimum Distribution (RMD).

How Arkos Helps Clients Give Strategically

We help clients create a Generosity Strategy alongside their Investment Plan, Tax Strategy, and Estate Plan.

Here’s what that often includes:

• Reviewing cash flow and setting annual giving targets

• Coordinating gifts of stock or business interests pre-sale

• Establishing Donor-Advised Funds or Charitable Remainder Trusts

• Incorporating family values through giving education

One of the most meaningful parts? Watching families give together. It builds unity, educates the next generation, and inspires legacy.

Want to Explore Your Generosity Strategy?

You don’t have to be ultra-wealthy to start giving meaningfully.

We’ve created a free guide that outlines the 5 most important financial decisions successful professionals make—including how to align your wealth with your purpose.

Want personalized help? Book a 15-minute clarity call:
📞 [Schedule My Strategy Call]

Let’s turn your equity into intentional wealth.