I don't have taxable assets to give, so capital gains are not an issue. I have to get it out of pre-tax accounts and show the income, and that has limited my ability to give. I'm finally out from under the PPACA tax credit, and now it's IRMAA.
But I believe in gifting when they could put it to work or use it as assurance in making various life plays that have a financial risk. By that I mean if one encounters a proposition with a big payoff, but it has a 1% chance of the poor house and having the savings would improve it to a 1% chance of a comfortable reset, it's easier to take the risk.
I see a lot of specifics when giving (money for a down payment or remodel, etc). If there are any ever grandkids, I'll probably start 529's. But so far, I've not given for a specific thing. My approach has been "no strings". Big wedding, down payment, trip of a lifetime, all on red, it's up to you.