Overcoming Inertia to Accomplish Your Charitable Giving Goals

What does it mean to leave a legacy? How do each of us define our legacy? These are deeply personal questions that are defined by our values, priorities and the financial resources we choose to devote to this portion of our lives.

Often, this important, non-urgent effort is not a focus until children are raised and retirement has been achieved. This new phase of life is when we have the time and money to finally prioritize charitable giving. However, even at this phase, inertia often sets in and can be difficult to get unstuck!

If leaving a legacy through charitable giving is important to you, read on. We have some practical solutions to get this ball rolling for you.

Where to Begin?

What is important to you and your family? Do you have a personal connection to a cause through your life experience or interests? It is important to spend some time answering these questions and narrow the focus to simply start the process. The National Center for Family Philanthropy offers many valuable resources, including a Family Road Map as one path forward. Defining Your Family’s Philanthropic Purpose - NCFP

As another option, enlist the support of your financial advisor and/or a philanthropic advisor. Marianne Alicona of Reina-Fox Philanthropy Services, LLC summarizes the challenges as follows:

Donors are people and can be sidelined by the same paralysis that affects many of us when making thoughtful decisions. The fear of making a mistake, lack of information to formulate a strategy, and couple or family dynamics can hinder donors from moving toward transformational giving. 

How Do I Vet Charities?

There are many websites available to help with this task. Sites such as CharityWatch, GuideStar and CharityNavigator provide their views of how effectively charities are managed. The IRS also lists organizations eligible to receive tax-deductible charitable contributions and confirm an organization’s tax-exempt status and filings below:

Search for tax exempt organizations | Internal Revenue Service (irs.gov)

I Want to Remain Private

Privacy and anonymity are legitimate concerns and should not prohibit one from giving. Using a trust or naming a charity as a beneficiary on a retirement account are potential tools for maintaining privacy. Alternatively, simply request to remain anonymous with your charitable contributions.

What Is the Impact to My Financial Plan?

If you are considering starting or increasing your charitable giving, be sure to discuss this with your financial advisor. As part of your financial plan, your advisor will incorporate your charitable giving and discuss any financial impacts to the plan. If tax efficiency is important for you, your advisor will also advise on the most tax efficient way to give based on your unique circumstances.

Help is Here

If you want to leave a lasting impact on the world through your charitable giving, yet don’t know how to begin, get unstuck and reach out to your financial advisor to get the ball rolling. We will leave you with a quote by the entrepreneur Ryan Blair. “If it’s important, you’ll find a way, if it’s not, you’ll find an excuse.”

References:

1. Defining Your Family’s Philanthropic Purpose - NCFP
2. O’Brien, Sarah. “4 Tips for Maximizing the Impact of Your Charitable Donations During the Season of Giving.” CNBC Accessed October 2, 2024.
3. charitywatch.org/.
4. guidestart.org/guidestar-charity-check.
5. charitynavigator.org/.
6. irs.gov/charities-non-profits/search-for-tax-exempt-organizations/.

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