Why More High-Net-Worth Families in Portland and Vancouver Are Using Donor-Advised Funds

Why More High-Net-Worth Families in Portland and Vancouver Are Using Donor-Advised Funds

 

For many successful families, wealth creates opportunities—but it also creates complexity.

A business owner sells a company after decades of hard work. An executive exercises stock options following years of growth. A retired couple decides to sell a highly appreciated investment portfolio or vacation property. What should be a milestone can quickly become one of the highest-income years of their lives.

These moments often bring an important question:

How can you preserve more of what you’ve built while making a meaningful impact on the causes you care about?

Increasingly, affluent families throughout Portland, Oregon, and Vancouver, Washington are discovering that the answer is not a single investment or tax strategy. Instead, it comes from coordinating investment planning, tax planning, retirement income, legacy planning, and charitable giving into one comprehensive financial plan.¹

One tool that has become increasingly valuable during these major wealth events is the donor-advised fund (DAF).

While donor-advised funds have existed for decades, many high-net-worth individuals are only beginning to realize how they can complement broader wealth management strategies, particularly within the unique tax landscape of the Pacific Northwest.

What Is a Donor-Advised Fund?

A donor-advised fund is a charitable giving account administered by a public charity. Individuals contribute cash or eligible assets, may qualify for an immediate charitable income tax deduction if they itemize and satisfy applicable IRS requirements, and can recommend grants to qualified nonprofit organizations over time.²

Think of it as creating a charitable investment account.

Instead of deciding where every charitable dollar must go before the end of the year, you can contribute during a high-income year while thoughtfully distributing grants to your favorite organizations over many years.

This flexibility has helped make donor-advised funds one of the fastest-growing charitable giving vehicles in the United States.³

Why Affluent Families Are Paying More Attention

Many financial planning strategies become more valuable as wealth grows.

High-net-worth families often experience financial events that dramatically increase taxable income, including:

• Selling a privately held business
• Exercising stock options or restricted stock units (RSUs)
• Receiving a significant executive bonus
• Selling appreciated investment real estate
• Liquidating concentrated stock positions
• Receiving a substantial inheritance
• Taking large Required Minimum Distributions (RMDs)

Rather than viewing these years solely as tax challenges, many families use them as opportunities to review charitable giving, estate planning, and long-term tax strategies together.²

The Portland–Vancouver Difference

Few metropolitan areas in the United States present the planning opportunities found in the Portland–Vancouver region.

Families often live, work, invest, own businesses, and support charitable organizations on both sides of the Columbia River.

That creates unique planning considerations because Oregon and Washington have fundamentally different tax systems.

Oregon continues to impose a state income tax on many forms of taxable income.⁴ Washington, by contrast, does not have a traditional personal income tax on wages or retirement income.⁵

For years, that distinction made Washington especially attractive to many retirees and business owners.

Today, however, the picture is more nuanced.

Washington’s Tax Landscape Is Evolving

Although Washington remains one of the few states without a traditional personal income tax, affluent residents should recognize that its tax landscape has changed significantly.

Beginning with tax year 2025, Washington’s capital gains excise tax adopted a tiered structure. Taxable Washington capital gains are generally taxed at 7%, while taxable gains exceeding $1 million are subject to an additional 2.9% surtax, resulting in a top effective rate of 9.9% on gains above that threshold. Importantly, many assets—including most real estate, retirement accounts, and certain business assets—are exempt from the tax.⁶

In 2026, Washington also enacted a new Millionaires’ Tax, scheduled to take effect beginning in 2028. The law applies to certain high-income taxpayers earning more than $1 million annually and is expected to face legal challenges before implementation.⁷

For high-net-worth families, the takeaway is not necessarily that taxes are becoming burdensome.

Rather, it is that sophisticated planning has become increasingly important.

Families selling a business, realizing significant investment gains, or experiencing another major liquidity event may benefit from coordinating charitable giving strategies alongside tax planning well before those transactions occur.

Giving Appreciated Assets Instead of Cash

Many people assume charitable giving means writing a check.

For affluent investors, that is often not the most tax-efficient approach.

Depending on the circumstances and the policies of the sponsoring organization, donor-advised funds may accept contributions such as:

• Publicly traded securities
• Mutual funds
• Certain closely held business interests
• Other qualifying appreciated assets

Contributing appreciated assets instead of selling them first may improve overall tax efficiency while allowing more value to reach charitable organizations.²

Every situation is unique, which is why these decisions should always be evaluated with qualified financial and tax professionals.

One High-Income Year Can Support Years of Giving

Another frequently overlooked strategy involves “bunching” charitable contributions.

Instead of making annual charitable gifts over several years, some families contribute multiple years’ worth of planned donations into a donor-advised fund during one unusually high-income year.²

They may receive the charitable deduction in the contribution year while recommending grants to nonprofit organizations over many future years.

This approach allows families to remain consistent in their giving while potentially creating greater tax efficiency during years when income is unusually high.

Supporting the Pacific Northwest Communities We Call Home

Many affluent families throughout Portland and Vancouver support organizations that strengthen their local communities.

Examples include:

• Oregon Food Bank
• Share
• Humane Society for Southwest Washington
• Community Foundation for Southwest Washington
• OHSU Foundation
• Educational foundations
• Faith-based organizations
• Veterans’ organizations
• Environmental conservation organizations

A donor-advised fund does not change the organizations you support.

It simply provides another way to thoughtfully manage when and how those gifts are made.

Charitable Planning Is Really Legacy Planning

For many families, donor-advised funds become about much more than tax deductions.

They create opportunities to:

• Build a family tradition of philanthropy
• Involve children and grandchildren in charitable decisions
• Organize annual giving through one account
• Coordinate charitable gifts with estate planning
• Create a lasting community impact

In many cases, a family’s greatest legacy is not measured solely by the wealth it transfers, but by the values it passes on.

When Should You Consider a Donor-Advised Fund?

While donor-advised funds are not appropriate for every situation, they may be worth discussing with your financial advisor and tax professional if you are:

• Selling a business
• Selling appreciated real estate
• Exercising stock options
• Receiving a significant bonus
• Managing concentrated stock positions
• Planning for retirement
• Developing an estate plan
• Looking for more tax-efficient charitable giving strategies

Bringing Every Piece Together

The most effective wealth management strategies rarely focus on a single investment or tax decision.

Instead, they coordinate investment planning, retirement income, tax strategy, charitable giving, healthcare planning, and legacy planning into one cohesive financial picture.

For high-net-worth families throughout Portland, Oregon, and Vancouver, Washington, donor-advised funds represent more than another charitable account. They are one example of how thoughtful planning can help families navigate significant wealth events while supporting the organizations and communities that matter most.

Ultimately, successful financial planning is not simply about accumulating wealth. It is about using that wealth intentionally—supporting your family, strengthening your community, and creating a legacy that reflects your values for generations to come.

References

1. 1. 1. Internal Revenue Service. (2025). Publication 526: Charitable Contributions.

      2. Internal Revenue Service. (2025). Donor-Advised Funds. https://www.irs.gov

      3. National Philanthropic Trust. (2024). 2024 Donor-Advised Fund Report.

      4. Oregon Department of Revenue. (2026). Oregon Personal Income Tax.

      5. Washington State Department of Revenue. (2026). Washington State Tax Information.

      6. Washington State Department of Revenue. (2025). New Tiered Rates for Washington’s Capital Gains Tax.

      7. Office of the Governor of Washington. (2026). Governor Signs Millionaires’ Tax Legislation.

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