Strategies For Smart Charitable Giving
‘Tis the season for giving! Beyond exchanging presents with your loved ones, this is the time of year when many people choose to give back. Whether it’s your first or your thirtieth year donating to charity, it’s a good idea to plan your donations ahead of time to help ensure your donation makes a greater impact.
Before you write a check to a charity, follow these steps first:
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Examine Why You’re Giving
It's important to know why you want to give. While it’s admirable to donate to a charity on a whim, strategic and planned charitable giving may have a greater impact on both your financial situation and your charity of choice. Choosing to give is a highly personal decision, so it deserves time for consideration. Think through your values, the causes that you find important, and whether you’d be better off giving your time, your money, or even both.
Along with helping others and feeling good about making a difference in someone’s life, charitable giving also enables you to set a good example for your peers and children. You can teach your family about the importance of giving back and using money for a good cause and focus on the non-material this holiday season.
Lastly, there can be potential tax benefits when you donate, namely in the form of deductions. The deductions will depend on how you choose to give, whether it’s cash, gifts in trust, donor-advised funds, or another form. Even if you’re donating solely to give back, it’s important to understand the potential tax benefit.
Decide How Much to Give
Don’t assume you can’t give back if you aren’t a millionaire. Even small donations are better than nothing. According to Harvard Health, giving from an early age can help you feel happier and more grateful. Giving what you can this year is an excellent way to get started.
Set a goal of how much you’d ideally like to give each year. Then, build it into your monthly budget so the donation isn’t a “surprise” to your cash flow at the end of the year. You may decide you’d rather give smaller amounts more frequently, such as $25 per month, instead of one lump sum, such as $300 per year. Don’t forget to see if your employer will match your donation. This can help make smaller donations more impacting.
Remember, there are other ways you can give back if you’re under financial strain. Many charitable causes have a greater need for volunteers than donations, such as organizations supporting social interaction for children or the elderly. You may also consider giving your professional skillset by working pro bono for a cause you’re passionate about.
Choose a Charity with Meaning
Rather than donate to the most popular charitable organizations, select charities that have a meaningful purpose to you. This may be animal rights, education for children, the environment, or another initiative. Take time to research organizations both on the local and national level to find one that speaks to you. Finding a charity that aligns with your values can help you feel more connected to the cause and stay motivated to continue giving.
Remember that not all giving is created equal as not all organizations use donations the same way. The charities that spend the most donated dollars on marketing are probably the first ones you're likely to recognize and who contact you consistently. Vet each charity you consider to make sure your donation is going to your intended recipient. One way to do this is to look up the organization on charitynavigator.org or The Better Business Bureau’s Give.org. You can verify their legal status, check their records, and more.
Getting Started
If your budget and financial plan allow, charitable giving can be a great way to add purpose to your money. If there’s one thing I’ve learned through the years, it’s that giving is much more satisfying than receiving. If you’re wondering how you can incorporate charitable giving into your financial plan, contact me. I’d be happy to help you navigate charitable giving and identify an appropriate giving method that works for you. Give me a call at 949-481-1807 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
Meet Rick
Over a 25-year career in financial services, Rick has helped hundreds of business and personal clients meet their investment goals by developing risk-efficient portfolio management strategies. He holds degrees in Economics and Psychology from the University of California, Irvine.
The water is Rick's second home: He and his family have been fishing Southern California and Baja going on four generations. In the 1940s, his grandmother worked at the Cannery Restaurant in Newport Beach—when it was an actual Albacore cannery. In the 1950s, his father was on the crew that built two of the boats still in service at Dana Wharf Sportfishing.
To schedule a complimentary wealth consultation or to get a second opinion on your financial plan, contact Sportfishing Financial today. To learn more about Rick, visit his website and connect with him on Facebook. To ask a question or get our list of upcoming fishing trips, call 949-481-1807 or email This email address is being protected from spambots. You need JavaScript enabled to view it..