As the year draws to a close, many turn their thoughts to charitable giving. Some donors are driven by tax strategy, while others give to fulfill a more profound sense of gratitude and purpose.
According to Jeffrey Fratarcangeli, founder and CEO of Fratarcangeli Wealth Management, understanding the psychology behind philanthropy reveals how giving impacts not only a person’s financial plan, but their long-term legacy.
Gratitude, Perspective and Purpose Drive Giving
For Fratarcangeli and his family, charitable giving starts with perspective, not paperwork.
“At the end of the day, many of us are very fortunate,” he says. “We have to be able to help and make an impact on people who are not as fortunate. Seeing someone else benefit from our ability to help is far more rewarding than any holiday gift you could receive.”
He says that over time, many high-net-worth individuals evolve from being motivated by accumulation to being motivated by contribution.
“You think you have a bad day until you hear about a family that can’t afford treatment for their child, or a household that doesn’t have food for the week. It changes your perspective on what matters.”
Many Fratarcangeli Wealth Management clients view wealth as a tool for social impact. As a result, the firm often guides clients who want to incorporate philanthropy as part of their overall wealth management strategy, rather than just making a one-time donation.
Tax Strategy and Timing Still Matter
While purpose may come first, Fratarcangeli says smart planning ensures generosity is also efficient.
“There are laws that allow you to deduct charitable donations,” he explains. “But recent legislative changes mean the rules around those deductions will change in 2026, so it makes sense to plan ahead rather than be caught off-guard.”
One approach he cites is contributing to a donor-advised fund.
“You can make the donation this year, take the deduction and then decide later how to distribute the money,” he says. “I would rather give those funds to someone who truly needs it than to the government.”
The goal, he adds, is not about gaming the system; it’s about aligning generosity with thoughtful financial stewardship.
Philanthropy as a Wealth and Legacy Strategy
Charitable planning is also a practical tool in long-term wealth preservation, especially for affluent families facing potential estate tax exposure. Current legislation allows married couples to transfer approximately $30 million tax-free to heirs. Anything above that, Fratarcangeli says, is taxed at 40%.
“To mitigate that, families can create a foundation and donate a portion of their net worth,” he explains. “That money avoids estate tax and can be gifted to charities annually.”
He sees this not just as a tax plan, but as a legacy plan.
“A foundation can be a gift that keeps giving, even when its founders are gone,” he says. “If you structure it right, your kids can manage that foundation as part of their life’s work. That is how you build purpose across generations.”
The Difference Between Reactive and Intentional Giving
Many donors act in December due to tax deadlines, but Fratarcangeli says the most meaningful giving is premeditated, not pressured.
“You may give the money at the end of the year, but you’ve already thought about why and where well before that,” he explains. “We are all human, and many of us need deadlines to execute on things we already intended to do. But the best giving is part of a plan, not a reaction.”
He adds that charitable intent often expands once clients see the real-world impact of their gifts.
“Once people see the impact of their support firsthand, whether that’s a visit to a children’s hospital or to the families they helped, that support becomes more than a line item on a tax return. It becomes part of who they are.”
Giving Back as a Core Value
At Fratarcangeli Wealth Management, giving is not just a client conversation, it is embedded in the firm’s culture.
Jeffrey and his wife, Nicole, are deeply involved with the Humane Society and the Boys & Girls Clubs of Broward County, among other causes. Their work includes fundraising, event sponsorship and hands-on support for youth programs and community development.
After a Fratarcangeli Wealth Management team member tragically lost his young daughter, the firm helped establish the Antonella Improta Memorial Foundation to support children with lifelong disabilities by providing access to service animals. As the founding board chair, Jeffrey personally contributes and leads fundraising efforts that help the Foundation sustain its meaningful impact.
Fratarcangeli explains that philanthropy reflects a broader belief he holds about responsibility and purpose: those who are fortunate have an obligation to give back.
“We talk to clients about investment returns and estate planning all day,” he says. “But the real question is: what do you want your money to mean when you’re gone? That’s the conversation that defines legacy.”
For more insight from Jeffrey Fratarcangeli, visit www.fratarcangeliwealth.com.
