Wealth is not just a measure of financial abundance; it’s a powerful tool for positive change

According to the New York Times, charitable giving rose dramatically in 2020, climbing to a record $471.4 billion. Schwab Charitable™ reported their clients increased donations by 27% in fiscal year 2022 despite the uncertainty of a bear market.

One important reason for this trend is the increase in crises such as the war in Ukraine, natural disasters exacerbated by climate change, and a dramatic rise in the cost of living, which is especially perilous for children and struggling families in the US and abroad.

No one knows what the future holds, so developing a flexible and adaptable investment strategy that includes tax-advantaged charitable support and a delicate balance of risk and reward is crucial.

Let’s take a closer look at the nuanced world of philanthropy and explore how you can amplify your impact through strategic and heartfelt giving.

The Art of Purposeful Wealth

The first step in maximizing your donations is examining your values and priorities and deciding what changes you most want to see and what causes you would like to strengthen.

Your philanthropic goals should be aligned with your worldview and geared toward making the most significant impact, both on your tax burden and in your community. There are countless charitable organizations, but not all of them are well-governed or particularly effective — and some can be outright scams

Here are some tips on how to do your due diligence and practice good cyber hygiene:

It’s best to partner with an experienced financial advisor who can help you navigate the complexities of savvy charitable giving and sustainable investing. 

Creating a Lasting Legacy

As I’ve mentioned before, many consumers believe that estate planning is only for the very wealthy or those with large families. 

The reality is that everyone should have a comprehensive estate plan in place to protect their loved ones and leave behind a legacy that truly helps those in need. One move you should consider is contributing to a charitable rollover directly from your IRA, which will also give you a tax break to enjoy now.

Referred to as a qualified charitable distribution (QCD), those over 70 years and 6 months can donate up to $100,000 to one or more charities from their taxable IRA instead of taking the required minimum distributions (RMD).

 This will offset your adjusted gross income (AGI), keep you from landing in a higher tax bracket, and avoid a bigger tax bill and the Medicare surcharge for those above a certain income threshold

 Valuable stocks and bonds can also be a powerful giving tool. This move will give you an income tax deduction and also help you and your charity of choice avoid the capital gains tax. By donating appreciated securities directly or via a donor-advised fund (DAF), you can give more and make a bigger difference.

Your Journey to Purposeful Prosperity

Instilling charitable values across generations can bring immense fulfillment. Whether it’s establishing a family foundation or integrating an array of charitable bequests into your estate plan, I’ll ensure your impact is not only felt today but resonates for generations to come.

The world needs compassion and philanthropy now more than ever before. Still, it’s vital to beware of the myriad of charity scams and give to organizations with a proven track record of benefitting people in need. Many “nonprofits” are irresistible to fraudsters who see it as easy money.

I have over 40 years of experience in the securities industry and can help you plan a charitable giving strategy that maximizes your tax benefits and philanthropic efforts. If you’re ready to be the change you want to see in the world, reach out to me today!