Philanthropy is a cornerstone of American culture. The reasons for giving are as diverse as the organizations to which donations can be made, but the one common motivator among philanthropists is a strong spirit of altruism. It is this selfless,
Philanthropy is a cornerstone of American culture.
The reasons for giving are as diverse as the organizations to which donations can be made, but the one common motivator among philanthropists is a strong spirit of altruism.
It is this selfless, individual generosity that keeps charities thriving. Even during these difficult economic times, Americans continue to give.
According to the Giving USA 2009 Annual Report, Americans contributed more than $300 billion to charity in 2008, with 75 percent coming from individuals.
These donations help provide care and services to millions of people every year. Without them, the government would have to finance these services through tax monies or they would disappear entirely.
The government
says thank you
Recognizing that every dollar donated by an individual is a dollar less that the government needs to kick in, tax breaks are offered for those who give.
This incentive should not be the main reason for benefaction, but it shouldn’t be ignored either.
Making every dollar work hard – both for the charity and donor – is a smart part of an overall financial plan.
More than one
way to give
Supporting a charitable organization is as important as choosing the best vehicle for your generosity.
Depending on the size of your gift and how its conveyance fits into your financial big picture, there are a variety of ways to make charitable donations.
Cash contributions and outright gifts are popular ways to donate. But there are ways to structure gifts that may make it possible for you to give even more and leave behind a legacy.
For example:
– Modest gifts of cash or property can be converted into a meaningful endowment by purchasing life insurance.
– A donor can give money or property to a tax-exempt fund and control which charities will receive benefits.
– Appreciated property can be sold and used to provide donations.
– Qualified plan accounts and IRAs can be used to make testamentary gifts.
Whether it’s social responsibility, family tradition, or in response to an event or illness that has had a profound, personal impact, Americans are spreading the wealth through charitable giving.
No matter why we give, often we give the same thing: Cash. Most of the time, charities prefer that form of giving. But there are additional strategies to consider.
As with all important financial decisions, speak to your financial professional, tax and legal advisors to determine how planned giving may fit into your overall strategy.
For more information about charitable giving, visit www.charitynavigator.com.
• Troy Wada offers securities through AXA Advisors. He may be reached at 241-7701 or at troy.wada@axa-advisors.com.
