It’s autumn—the season of fall foliage, pumpkin-spiced lattes, and ghosts, goblins and ghouls. But did you know that Halloween isn’t the only October event that requires some preparation?
Financial planning week—observed during the first week of October—is designed to raise awareness about things like investing, saving for retirement and estate planning. Of course, any conversation about financial planning should involve philanthropy. If you’re smart, you can help others and protect your own financial futures.
Don’t let financial planning week pass you by. Here’s how you can get ready!
Make Philanthropy a Key Part of Your Plan
People give for many reasons: a commitment to a cause, a personal experience, tax implications. Whatever the reason, philanthropy should be front-and-center in your financial plan, not an afterthought.
Why? Giving is more popular than ever. But according to a UBS Investor Watch report, only 40% of investors surveyed were fully satisfied with the results of their giving. By collaborating with their financial advisors, donors can be more strategic in how they distribute their gifts rather than simply writing a check to whichever charity comes calling. Of course, financial advisors can also help structure charitable gifts to ensure that their clients take advantage of all the tax deductions available to them.
Consider Donor-Advised Funds
A donor-advised fund is like a savings account for your charitable donations. Throughout the year, you invest cash or other assets and then distribute the money to charities over time. In return, you get to take an immediate tax deduction. With donor-advised funds, you can also contribute non-cash assets like stocks, which encourages donors to give even more generously. While donor-advised funds are a win-win for all involved, donors should make sure to remain active in how they distribute their gifts rather than letting the money languish for months if not years.
Get in the Holiday Spirit
The end of the year is when many of us decide how much and where we want to give (remember, you have to get your gifts in by the end of the year if you want to take advantage of the tax benefit for 2018). But, did you know that there are ways you can help your gifts go even further? According to America’s Charities, 65% of large companies provide matching gifts. In 2017, Raymond James and its employees donated more than $6 million to the United Way as part of the company’s 47-year-old corporate matching partnership.
Since employees are increasingly looking for meaningful ways to give back, many employers are getting creative. During the holiday season, Main Street Financial Services, based in Minnesota, donates $1,000 to a charity of each employee’s choosing.
For Main Street Financial Services, giving back isn’t just a once-a-year proposition. Throughout the year, the firm hosts “Blue Jean Dollars” on Fridays, allowing employees to spend $3 to wear jeans to work. Each quarter, the office determines how the money can best be used to support the community, and Main Street matches each donation, dollar for dollar.
Philanthropy is key to your financial picture. Consider all the ways you can make a difference, both as part of a comprehensive strategy and in conjunction with workplace programs.
