Having enough money to take care of yourself is one level of financial stability. Being able to support your family and close friends is another. Being able to support your community is aspirational and achievable.
IS ONLY ONE PIECE OF THE PUZZLE THAT MAKES UP YOUR FINANCIAL PLAN.
Relational Financing Planning
A giving plan can be similar to your own personal budget: there may be organizations or individuals you support in an ongoing way, similar to fixed expenses, and those that are more discretionary recipients. Charitable giving can bring up a lot of feelings and making a plan can help manage those feelings. Charitable giving is one component of the financial planning process.
Frequently asked questions about this topic:
Should I keep receipts for my giving?
Yes. Depending on your overall deductions, you may receive a tax deduction for qualified charitable giving. Hang onto receipts and maybe even make a spreadsheet of your gifts, both deductible and non-deductible.
Should I be using a donor advised fund?
A donor advised fund may be a strategy to consider if you tend to give to many 501(c)3s, if you give to deductible organizations ongoing, and/or if you have highly appreciated non-qualified assets.
Can I just give my required minimum distributions to charity?
If you are 72 years old or older and have required minimum distributions, you may want to consider a qualified charitable distribution (QCD). This strategy may save you in taxes and accomplish your giving goals all at the same time.