“You cannot do a kindness too soon because you never know how soon it will be too late.” Ralph Waldo Emerson
It’s safe to assume that we all want to leave the world a better place than it was when we were born. For many, that means giving to charities. If you feel convicted to support a cause, it’s wise to make giving a part of your financial plan.
If planning is done early enough, charitable gifts can be set up in a way that they provide those making them with not only tax benefits, but income as well. Charitable giving needs to be part of your big picture financial plan if you want it to have the most benefit.
- How do I give in a tax preferred way?
- How do I give from a position of clarity and confidence in my own financial strength?
- How much can I afford to give?
These questions and many more are very relevant to your overall financial plan if you are having thoughts about giving and your legacy.
How does Charitable Giving Impact Me?
Charitable donations can have a range of positive financial implications. Most of these are in the form of one tax deduction or another. With enough to give or with the right asset types, you may also have options for producing some income. Both of these options, however, require planning. While most deductions will be taken right away, as the donations may be small, more substantial donations will have effects that could last for years or even decades.
The areas of estate planning and taxation are tightly connected to charitable giving strategies. At Being Financial, we help clients understand the connections between these areas to develop a giving strategy that ends up providing more to themselves than they ever intended.