Did you know… with thoughtful, advanced planning, you can extend your legacy of charitable giving beyond your lifetime, creating lasting benefits for the organizations you care about? And if you have a desire to give back to society (or a special cause) as part of your legacy, there are many ways you can do so. Besides feeling good about giving back, a bonus of giving is that when you include giving in your financial plan you can make an impact while also receiving tax benefits.
One type of giving is philanthropic giving, which addresses the root cause of social issues and requires a more strategic, long-term approach. Here are tips to help guide you as you work towards including philanthropic giving as part of your goals in your financial plan:
1. Identify your values – Determine your reason for giving and what you want to change. Since philanthropy is giving over time, determine how long you want to give and if you want it as part of your family’s legacy (for the next generation to manage.)
2. Define your goals – Our financial team can help you define your goals and implement a giving plan as part of your overall financial plan. Each year, you’ll evaluate how much you intend to give and when. Depending on your circumstances, you may include a giving schedule, such as quarterly or a one-time contribution each year. Other things to consider when defining your philanthropic goals include the following:
3. Select your charities – To ensure a charity is legitimate, ask the charity for details about their mission and how they’ll use your donation. The charity should also provide proof that it’s a 501(c)(3) public charity or private foundation so that your contribution is tax-deductible. As a second fact check on the charity, visit the IRS Tax Exempt Organization Search list to ensure it is a reputable, tax-exempt charity.
4. Understand how to maximize giving – Our team can work with your tax professionals to help you determine how to maximize the tax advantages of giving. As tax laws change, your financial plan and giving plan may need to be revised so that you receive the tax benefits of your gift. Here are a few ways to maximize your giving:
5. Determine which strategies to use – There are strategies you can utilize to help you organize your giving within your financial plan, such as:
6. Consider giving other assets – There are other assets you can give to charity that are not associated with securities:
Please don’t hesitate to contact our office to learn more about how we can help you develop a strategy that includes philanthropy in your financial plan. Our financial team is happy to work with your legal and tax professionals. And together, we can help ensure that your goals are listed and progress towards meeting your giving objective is reviewed regularly. Call us if you have questions or want to schedule a meeting.
6 Tips for Philanthropic Giving
December 14, 2022