A unique opportunity to make an impact: Philanthropy after an IPO

An IPO can be a defining milestone, often bringing new opportunities alongside increased financial complexity and the need for more intentional planning. For many individuals, it’s also a moment to clarify what they want their wealth to do: support causes and communities they care about, create a legacy, educate and communicate with younger generations, and align resources with long-term priorities.

It can be tempting to jump straight into tactics—selecting a structure, selecting a gift amount and choosing organizations. But often, it’s helpful to first step back and view these decisions in the context of your overall vision and values, helping to position your giving strategy for long-term success.

To determine if a more structured philanthropic approach makes sense for you, we recommend starting with three key questions outlined below.

1. How will you focus your philanthropy?

Philanthropy is personal. Creating a durable plan typically starts by defining what you want your giving to represent—now and over time. This can be a solo exercise, or something you choose to share with a spouse, partner or other trusted stakeholders.

These themes will help bring your goals into focus. 

2. Which charitable structure is right for you?

Your choice of charitable structure—which may vary by jurisdiction—is an important factor in your ability to meet your financial goals, desired involvement, privacy preferences and administrative tolerance. Over time, many philanthropic approaches evolve as needs become more complex and the scope of philanthropic ambition expands.

When choosing a vehicle, first clarify your decision-making and operating preferences:

• Is this giving plan designed for you alone, or will others be involved over time?
• Who will lead (if shared)?
• How will decisions be made, and how formal should governance be?

If you choose to involve others, a well-defined decision-making process will help ensure that your giving is efficient, consistent and aligned with your objectives.

For donors with international interests, it is also important to consider where you are tax resident, where intended recipients are located, whether gifts will cross national borders,  and which reporting and governance requirements apply.

Common structures

3. Which assets should you donate—and when?

After an IPO, the particular assets you donate, and the timing of those gifts, can matter as much as the vehicle you choose. Some donors prefer to give cash. Others may consider donating securities or more complex assets, depending on their goals and constraints.

Donors may choose to give:

• Cash—typically the simplest route.
• Publicly traded securities—often suitable post-IPO, especially for those with concentrated positions.
• Other assets—such as real estate or private interests, which may require longer timelines and documentation.

If planning to donate on a global basis, donors should consider whether and how contributions to a foreign charity are eligible for a charitable deduction in their country of residence. Donors should also consider foreign exchange and currency matters and cross-border reporting and disclosure requirements.

Know when to give

Timing can be especially important after an IPO, when income may be elevated and portfolios are being adjusted. Depending on local tax rules and the timing of the sale of shares, donors may consider accelerating or combining planned gifts into a particular tax year, or if spreading gifts over time may be more appropriate. A local tax advisor can help you choose an approach that fits your circumstances.

You’ll want to take inventory of your capital and commitments—what you own, the levels of concentration and liquidity, and the priorities that need to be funded. This will help you align your assets with your giving plan, timing preferences and implementation realities.

If you plan to donate company shares or other equity interests, you’ll want to coordinate the timing of your donation with the implementation of your broader diversification approach, any applicable transfer restrictions and the legal and tax rules in relevant jurisdictions.

Because available structures have different tax attributes and regulatory considerations across jurisdictions, it’s important to approach asset selection deliberately and in coordination with appropriate local legal, tax and other professional advisors.