Charitable giving can be a way to participate in something meaningful to you and your family, a cause that aligns with your core values, while benefiting members of the community. People can benefit greatly from giving – personally, psychologically, and financially.
Each new year represents for many people a new start, maybe a personal makeover, changing not necessarily just the way you look and feel through an inspired diet or exercise regimen, but how you embrace your values.
As 2025 begins to unfold, what better way to reexamine who you are than by giving to someone or an organization where your gift can help to make an important difference.
How to get started?
Self-assessment. What is driving you to give? What are your goals for giving? Giving is very personal, and everybody gives for their own reason. For some, it is a reflection of their life experiences, something within the environment or nuance within the culture that inspires them; for others, it may be purely financial as they seek out tax advantages.
Decide what to give: cash? other asset, maybe securities, or art, or perhaps your own time, energy, creativity? There are so many different ways to give. Determine which method works for you and your giving strategy.
Identify your goal(s). Consider these ideas for impactful giving:
- Financial donations such as cash, stocks, bonds, or other securities. You can donate online, through the mail, in-person, over the phone, or through a donor-advised fund to name several ways.
- Specific assets such as clothing, children’s toys and games, a vehicle, artwork, hotel points, or other items.
- Tax considerations may play a part in your decision. A financial professional can help you navigate the impact tax could have on your giving strategy.
- Talk to your employer about your giving plans. Many employers will offer to match your contributions.
- Consider volunteering as a means of charitable giving. Giving doesn’t only involve cash and assets. You can also give your time, knowledge, or specific skill set.
Put together a list of causes that are meaningful to you – Giving to causes that matter to you can go far beyond the financial aspect. Giving because it makes you feel good inside may be more beneficial than doing it for a financial angle.
Research potential charitable organizations – If you want to make one or more gifts, then do your research and learn about different opportunities. Resources and tools that can help you navigate the world of philanthropy include:
- Charity Navigator
- GuideStar
- Center for Effective Philanthropy
- Fidelity Charitable
Look into possible tax considerations – Before you meet with a financial professional, consider looking yourself into how tax planning might help to reduce income taxes, capital gains taxes, estate taxes. Develop a list of questions pertinent to your own goals and situation, to take with you to your meeting. Do you want to keep financial assets for later distribution to loved ones, but make a gift of the income in the meantime? Or maybe you might want to use the income yourself, but make a deductible gift now of the assets themselves?
Consult your financial professional – Any form of charitable giving might impact your financial goals and strategies. Once you know why and what you want to give, and what you want to achieve by your gifting, schedule a comprehensive review with a financial professional to find out how various gifting strategies might play out.
It is never too early to meet with your financial professional to start creating a giving strategy. Schedule that appointment today. Happy New Year!
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
Sources:
Nonprofit data for donors, grantmakers, and businesses | GuideStar | Candid
Home-CEP | The Center for Effective Philanthropy
Research Charities | Fidelity Charitable
Charity Ratings and Donor Resources | Charity Navigator
Charitable Contributions: Tax Strategies (fidelitycharitable.org)
This article was prepared by LPL Marketing Solutions
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