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The Art of Philanthropy - Best Practices for High-Net-Worth Individuals Looking to Give Back ​

The Art of Philanthropy: Best Practices for High-Net-Worth Individuals Looking to Give Back

What is Philanthropy?


Philanthropy is the act of giving time, resources, or money to charitable causes. It is an altruistic behavior aimed at improving the well-being of others rather than serving personal gain.

 Philanthropy can take many forms, from individual donations to large-scale foundations and corporate giving programs.

What is Philanthropy - Secvolt

Examples of philanthropy include:

  • Supporting social and environmental causes,
  • Providing financial aid for education,
  • Funding medical research,
  • Investing in arts and culture, etc.

The Bill and Melinda Gates Foundation, for instance, has donated billions of dollars to fight diseases such as malaria and polio, while the Rockefeller Foundation has provided funding for initiatives focused on reducing poverty and increasing access to education.

So, this is about the concept of philanthropy. Let us now look at how it is relevant for high-net-worth individuals. 

Importance of Philanthropy for High-Net-Worth Individuals

Importance of Philanthropy for High-Net-Worth Individuals


High-net-worth individuals (HNWIs) can significantly impact society through their charitable giving. Philanthropy is crucial not only for the betterment of society but also for the personal growth and satisfaction of HNWIs. The following is the importance of philanthropy for high-net-worth individuals:

  1. Fulfillment of Social Responsibility- Charitable giving is a way for HNWIs to fulfill their social responsibility. They have a unique position in society to impact the world positively. By using their wealth to support charitable causes, they can contribute to the betterment of society and give back to the community.
  2. Building a Legacy- Philanthropy is an opportunity for HNWIs to build a legacy that goes beyond their financial success. By supporting causes they believe in, they can leave a lasting impact on society and be remembered for their contributions. It can also help to create a positive reputation and improve the public perception of the individual and their business.
  3. Tax Benefits- Charitable giving can also provide tax benefits for HNWIs. For example, charitable donations can be deducted from taxable income in the United States, resulting in a lower tax bill. This can also be an effective strategy for estate planning, allowing HNWIs to reduce the amount of taxes their heirs will have to pay.

In conclusion, philanthropy is an essential aspect of the lives of high-net-worth individuals. Next, let us understand the importance of setting clear philanthropic goals. 

Importance of Setting Clear Philanthropic Goals


Setting clear philanthropic goals is critical for individuals and organizations engaging in philanthropy activities. By defining specific goals, they can focus their resources and efforts towards making a measurable impact. Moreover, clear goals help ensure that philanthropy and charity efforts align with their values and beliefs.

Without clear goals, high-net-worth individuals may end up donating to various causes without a clear purpose, which can result in fragmented efforts and diluted impact. By setting specific goals, philanthropists can ensure that their resources are directed toward the causes that matter most to them.

In addition, setting clear philanthropic goals can also help to measure progress and evaluate the effectiveness of philanthropy activities. By regularly tracking and evaluating progress toward achieving these goals, philanthropists can determine the success of their efforts and make any necessary adjustments.

Thus, setting clear philanthropic goals is crucial for the success of philanthropy activities. By doing so, they can ensure that their philanthropy efforts have a meaningful impact and contribute to positive change in the world. Now, it’s time to look at the importance of legacy planning in philanthropy. 

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Importance of Legacy Planning in Philanthropy


Legacy planning involves creating a plan to ensure that philanthropy efforts continue beyond their lifetime. It is a vital aspect of effective charitable giving for philanthropists. The following points highlight the importance of legacy planning in philanthropy:

  1. Family Members Carry On The Philanthropist’s Vision- Legacy planning should involve engaging family members in philanthropy activities. This can help pass on the philanthropist’s values and vision to future generations. By involving family members in philanthropy, they can learn about the causes and organizations that the philanthropist supports and continue to carry on their legacy.
  2. Continuous Philanthropic Efforts- Philanthropists should develop a succession plan to ensure their philanthropy efforts continue after they pass away. This can involve identifying successors to take over the philanthropy work, providing them with the necessary resources and training, and establishing a framework for decision-making.
  3. Ensures Long-Term Sustainability- Philanthropists should ensure that their philanthropy efforts are sustainable in the long term. This can involve setting up endowments, creating partnerships with other organizations, and investing in programs that have a lasting impact. By ensuring the sustainability of their philanthropy efforts, philanthropists can continue to make a difference for years to come.

A philanthropist example of effective legacy planning is the Bill and Melinda Gates Foundation which has set up endowments to ensure the continuation of their philanthropy work. By following these ways, philanthropists can leave a lasting impact on the world and continue to make a difference for future generations. Next, let us look at various options for philanthropic giving. 

Various Options for Philanthropic Giving

Various Options for Philanthropic Giving

Philanthropic giving is a meaningful way to contribute to a non-profit and make a difference. However, choosing the right giving option that aligns with your philanthropic goals and values is crucial. The following are various options for philanthropic giving:

  1. Creating a Private Foundation- Creating a private foundation is an option for those who want complete control over their philanthropy efforts. This option involves establishing a foundation managed by the philanthropist or their family. The foundation can then distribute grants to organizations that align with their philanthropic goals.
  2. Establishing a Donor-Advised Fund- Establishing a donor-advised fund is an option for those who want a more hands-on approach to their philanthropy efforts. This option involves contributing funds to a sponsoring organization, such as a community foundation or financial institution, and advising on how the funds should be distributed to non-profit organizations.
  3. Donating Directly to Organizations- Donating directly to non-profit organizations is an option for those who want a more immediate impact on their philanthropy efforts. This option involves identifying non-profit organizations that align with their philanthropic goals and values and then making direct contributions to these organizations.

So, philanthropists can choose from these options for philanthropic giving. Selecting the right option that aligns with your philanthropic goals and values is essential to impact the causes you care about significantly.

Next, we’ll look at a critical aspect of philanthropic giving, i.e., the tax implications.  

Tax Implications of Philanthropic Giving 


Philanthropic giving not only benefits the causes high-net-worth individuals care about but also has significant tax benefits. Here, we will discuss the tax implications of philanthropic giving and strategies for maximizing tax benefits while minimizing tax liabilities: 

  1. Tax Benefits of Philanthropic Giving- When a high-net-worth individual makes a charitable donation, they can receive a tax deduction on their income tax return. The deduction amount varies based on the type of donation and the individual’s tax bracket. For example, if a high-net-worth individual donates $10,000 to a qualified charitable organization, they can receive a tax deduction of up to $10,000.
  2. Maximizing Tax Benefits- One strategy for maximizing tax benefits is to donate appreciated assets, such as stocks or real estate, instead of cash. This can provide a significant tax benefit by avoiding capital gains tax on the asset’s appreciation. Additionally, high-net-worth individuals can maximize their tax benefits by making a charitable donation that exceeds their annual income limit, which allows them to carry forward the excess deduction for up to five years.
  3. Minimizing Tax Liabilities- To minimize tax liabilities, high-net-worth individuals should consider setting up a donor-advised fund or a private foundation. These options provide flexibility in philanthropic giving while also allowing for significant tax benefits. Additionally, high-net-worth individuals can consider using a charitable lead trust or charitable remainder trust, which can provide both philanthropic giving and tax planning benefits.

Therefore, philanthropic giving provides significant tax benefits for high-net-worth individuals. By maximizing tax benefits through these strategies, philanthropists can significantly impact the causes they care about while also maximizing their tax benefits.

In the following section, let’s look at some tips for creating a philanthropic strategy. 

Tips for Creating a Philanthropic Strategy

Tips for Creating a Philanthropic Strategy


Creating a philanthropic strategy can help individuals make a meaningful impact through charitable giving. Here are some tips for developing an effective philanthropic strategy:

  1. Identify Causes- Start by identifying the causes that align with your values and passions. This can help you focus your giving on issues that matter most to you.
  2. Research Organizations- Conduct research to identify reputable organizations that align with your philanthropic goals. This can include reviewing financial statements, mission statements, and programs to ensure that the organization fits your charitable giving well.
  3. Set Goals- Establish clear and measurable goals for your philanthropy activities, such as the amount of money you want to donate or the number of people you want to help.
  4. Determine Level of Involvement- Decide on your level of involvement with the organizations you support. This can include volunteering, serving on boards or committees, or mentoring those in need.
  5. Establish Metrics- Create metrics to measure the success of your philanthropic giving. This can help you evaluate the effectiveness of your donations and adjust your strategy as needed.
  6. Seek Expert Advice- Consider seeking advice from philanthropy experts or financial advisors to help create a sustainable and impactful philanthropic strategy.

Effective charitable giving requires thoughtful planning and careful consideration, and a well-developed philanthropic strategy can help ensure that donations have a lasting impact. In the final section, let us look at another alternative that has been breaking records with its numbers & helping high-net-worth and ultra-high-net-worth individuals build a lasting legacy. 

The Bottom Line


Philanthropy is an essential aspect of giving back to society, and there are various ways individuals and organizations can engage in it. It’s essential to align philanthropic efforts with personal values and interests while also researching and evaluating the impact of charities and organizations. By leveraging technology and collaborating with others, philanthropy can have a significant positive impact on communities and the world at large. Ultimately, philanthropy is about making a difference in people’s lives and contributing to a better future for all.

Frequently Asked Questions-

  • What are the benefits of philanthropy for high-net-worth individuals?

Philanthropy provides high-net-worth individuals the opportunity to positively impact society, build a legacy, and gain tax benefits.

  • What tax considerations should high-net-worth individuals be aware of when making philanthropic donations?

High-net-worth individuals should be aware of several tax considerations when making philanthropic donations, such as the deductibility limits on charitable contributions, the type of organization they are donating to, the timing of the donation, and the potential tax benefits of donating appreciated assets.

  • How can high-net-worth individuals identify causes that align with their values?

High-net-worth individuals can identify causes that align with their values by considering issues they are passionate about, researching organizations’ missions and impact, and engaging with non-profits to understand their work better.

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Ashish Verma

Ashish Verma is the founder and CTO of Secvolt, with close to 10 years of experience in the IT industry. He has been the technical backbone of the company and has worked tirelessly to make the technical infrastructure robust. He is a passionate entrepreneur who generates solutions that have the potential to bring change.

In order to ease the client’s interaction with Secvolt, he has strived to develop the business’s technological foundation and establish a user-friendly platform. Ashish has also contributed substantially to smoothening the company’s administration and ensuring that there are no lacunae in the broad structure of the organization. 

Early Years

Coming from a middle-class family, he was aware of the problems that people faced while using technology. He sought to create something that was simple to use yet had a powerful effect. As he studied computer science, he became eager to offer a solution to real issues. He began his professional career at Amdocs, where he gained expertise in client management while catering to more than 20 clients. Later, he moved to Citicorp, where he had exposure to the investment industry. His time at Amdocs and Citi enabled him to produce high-standard, efficient, and scalable technical infrastructure.

He left corporate jobs for his startup because he was passionate about working on the concept of a smart city platform. He expanded the concept internationally and even collaborated with Global Dignity-Kuwait. Things didn’t work out for him the first time. He states, “My failures didn’t stop me from experimenting and trying new things.” He rose from the ashes like a phoenix and founded FewerClicks, an End to End IT solution company.

He worked on the creation of Solster Finance, a decentralized financial platform based on the Solana blockchain. He created this platform single-handedly which has helped the team raise a $1M investment and a revenue of more than $5M within 6 months of launching. 

He has previously worked on many blockchain technologies and cryptocurrency ventures, which include Decentralized Finance Applications (Defi), Decentralized Applications (Dapps), File Contracts (SIA, record-keeper), Smart Contracts (rust, solidity), and NFT Development. His experience and effective communication have helped many team members understand Secvolt effectively and the underlying technology it is powered by.

He possesses the ideal combination of strategic thinking and excellent business insight. He is responsible for formulating technical aspects of the company’s strategy to guarantee alignment with business objectives. With his drive to experiment with new technologies, he has helped Secvolt achieve a competitive edge. Being in charge, Ashish never holds back in encouraging the different departments to make profitable use of technology, helping to grow as an unstoppable team at Secvolt!

Hanif Shaikh

Hanif Shaikh is the founder and CMO of Secvolt, with over 8 years of experience in the industry. He plays a crucial role when it comes to the growth of Secvolt. Since the beginning, he has acted as a mentor for each and every employee of the company, and he makes an effort to be accessible to his staff anytime they need him. 

Hanif first entered the Blockchain and Crypto world in 2016, and nothing has stopped him since. He views blockchain as a transparent platform that provides authority and accountability back to the people. He consistently believes that “overcommunication is better than miscommunication.” He has lived by this motto with his staff, clients, and networks.

Early Years

Hailing from Gujrat, a state in India, he is following his dream to contribute to making this world a better place. In the process, he has struggled, made some mistakes, and learned lessons from those mistakes to achieve success in life. His entrepreneurial attitude dates back to his childhood when he learned from his father’s business and aspired to have it all. He came from a humble background and had ambitions to succeed in life.

He has developed two successful businesses from scratch, and in the process, he has inspired young people to start their own businesses. He was an integral part of the Quora Mumbai Meetups and helped it become a great success in a short period of time. Later, he began organizing meetups to raise awareness about blockchain, cryptocurrencies, and their applications. He also shared his knowledge of ICOs, highlighted reputable ICOs, and established a small cryptocurrency community on WhatsApp groups.

He chose to go on a Blockchain Tour in India in 2019 and met some fascinating people. Throughout his journey, he has been able to build an extensive and robust network that has aided Secvolt’s growth. Because of his expertise and understanding of the Crypto Industry, he has been featured on several news channels and has advised the youth on the subject.

He is in charge of the company’s marketing operations and is responsible for developing its marketing strategy and vision. He oversees a group of passionate marketing professionals and plans promotional strategies with the goal of making  Secvolt a global brand. 

He is a perfect blend of a practical attitude and innovative business acumen. He believes in the ability of individuals to perform exceptionally well when given an environment to experiment and explore their passions; a culture that he has built at Secvolt.

Divakar Choudhary

Divakar Choudhary is the founder and CEO of Secvolt who has been trading for more than six years now. He started the business in 2018 with the conviction that if anybody could dominate the market, it was him. He poured all of himself into the business and turned Secvolt into a market-beating machine.

Divakar developed the fundamental quant models that perform risk management and capture alpha using his skills from the previous organization and his time spent in the market. In order to make the system effective, he backtested risk mitigation algorithms and worked on them for more than 4 years to produce results.

Early Years

He began his crypto journey in 2013 after getting his first gaming Laptop and melded in with the Blockchain community like sunbeams on the ocean. He created many YouTube channels at the age of 15 and businesses by the time he was 17. Technology has always piqued Divakar’s interest. He endeavored and succeeded at freelancing in his effort to achieve financial independence. However, he soon realized that freelancing would always keep him in the rat race, and the only way out would be to build a machine yielding generational wealth.

Soon, he started trading using his own capital but suffered a loss in the market. He says, “95% of people lose money & the rest 5% make money from the loss of those 95%.” He then began working on an effective technique to be included in this 5% after losing part of his own assets during the early stages of trading. He began evaluating quant strategies using statistical models.

With his methodology, he once produced a 20% ROI in a single month. With the zeal of creating something exceptional, he borrowed money from friends and family and generated decent returns for them using primitive quant models. Month after month, the system’s efficiency and the competence of the man behind it allowed for excellent market returns.

In the beginning, Divakar worked on his laptop for over 18 hours. It took every ounce of his energy as he executed about 530+ deals daily for 4 years to create this company from the ground up. In 2021, he increased his volume by 827%, trading a total of $52 million and hitting a single account.

In his words-

“What does becoming “THAT” GUY mean to you? Who did you need when you were young? Be that person!”

He is a perfect example of someone who followed his passion and made a fortune from it! He dreamt of creating generational wealth as a youngster, envisioned it as an adult, and is now making it a reality with Secvolt!