Philanthropy is an act of giving, either through time or resources, for the betterment of society. It is a selfless act that can bring about significant benefits for both the giver and the recipient. When it comes to wealth management, philanthropy can play a critical role in shaping your financial plan. The following are some tips on how to incorporate philanthropy into your wealth management strategies and estate plan.
Create a Giving Plan
Before incorporating philanthropy into your financial plan, it is important to create a giving plan. A giving plan outlines your philanthropic goals, such as the causes or organizations you want to support, the amount of money you want to donate, and how often you want to give. A giving plan will help you stay on track and ensure that your philanthropic efforts align with your overall financial plan.
Maximize your charitable deductions
Another way to incorporate philanthropy into your financial plan is to maximize your charitable deductions. Since charitable donations can be tax-deductible, they can help to reduce your taxable income and potentially lower your tax bill. To maximize your charitable deductions, consider donating appreciated assets, such as stocks or real estate, instead of cash. By donating appreciated assets, you can avoid paying capital gains tax on the appreciation and receive a tax deduction for the full value of the asset.
Consider a Donor-advised Fund
This type of fund is a charitable giving account that allows you to make donations to a charity over time while receiving an immediate tax deduction. With a donor-advised fund, you can donate cash, securities, or other assets and then recommend grants to your favorite charities over time. Donor-advised funds can be an effective way to incorporate philanthropy into your financial plan because they allow you to give to charity while still maintaining control over how your donations are used.
Include philanthropy in your Estate Plan
Incorporating philanthropy into your estate plan is another way to leave a lasting impact on society. One way to do this is by creating a charitable trust. This type of trust is a legal entity that allows you to donate assets to a charity while still retaining some control over how the assets are used. For example, with a charitable remainder trust, you can donate assets to a charity while still receiving income from the trust for a set period. After the trust term ends, the remaining assets are donated to the charity. A charitable trust can be an effective way to incorporate philanthropy into your estate plan while also providing you with some financial benefits during your lifetime.
Leave a Charitable Legacy
Finally, consider legacy wealth philanthropy as part of your estate plan. This can involve leaving a bequest to a charity in your will or creating a charitable foundation in your name. Leaving a charitable legacy can provide a lasting impact on society and can be a way to ensure that your values and beliefs are carried forward long after you are gone.
Whatever type of philanthropic legacy you want to leave to benefit society and cause you to hold dear, Robert Emmer with Silversage is always ready to guide you through the process of creating a plan for legacy wealth management in Richmond, California. Get in contact with us now to get started right away.
DISCLOSURE:
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. For version 8.1 only, please add: The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The NASDAQ-100 (^NDX) is a stock market index made up of 103 equity securities issued by 100 of the largest non-financial companies listed on the NASDAQ. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor’s results will vary. Past performance does not guarantee future results.