As we move into the final months of the year, charitable giving naturally becomes a focus for many families. Whether it’s inspired by the season of giving, the desire to support causes close to the heart, or strategic year-end tax planning, now is an excellent time to reflect on how, why, and where we give.
But charitable giving is not just a personal or financial decision—it can also be a powerful teaching moment. Engaging your children or grandchildren in conversations about giving can help instill values such as empathy, gratitude, and social responsibility. It also introduces them to the idea that money is more than just a tool for consumption—it’s also a way to create positive change in the world.
Here are a few key points to consider as you think about charitable giving this season.
Start With the Basics: What Is a 501(c)(3)?
When you are making a donation, it’s important to confirm that the organization is a qualified 501(c)(3) nonprofit. This IRS designation means the organization is tax-exempt and eligible to receive tax-deductible donations. For families, this is a great starting point for discussion.
Explain to your children that not all “charities” are held to the same standards. A 501(c)(3) status ensures that the organization operates with a certain level of oversight and transparency. You can look up the status of any nonprofit organization on the IRS’s Tax Exempt Organization Search tool.
Be Mindful of Social Media
Social media has made giving more immediate and emotional. A compelling post or video can go viral and inspire thousands of people to donate within hours. While that can be a wonderful thing, it can also open the door to scams or mismanaged funds.
This is a valuable opportunity to teach children critical thinking. Encourage them to ask questions:
- Where is the money going?
- What does the organization actually do?
- Can we learn more about their impact?
Resources like Charity Navigator, GuideStar, and BBB Wise Giving Alliance can help you dig deeper. Researching a charity together can become a family activity that not only protects your dollars but also reinforces the importance of decision-making.
Give With Intention and Values
Perhaps the most meaningful part of charitable giving is finding a cause that reflects your values. This is where involving children becomes especially powerful.
Ask your kids what causes they care about and explore charities related to those topics together. Giving them a voice in the process not only makes it more engaging but also teaches them that their values and perspectives matter.
In conclusion, charitable giving is deeply personal and impactful. By making thoughtful choices, verifying 501(c)(3) status, avoiding the pitfalls of social media, and aligning your core values, you can ensure that your donations are truly making a difference.
Disclosures:
Apella Capital, LLC (“Apella”), DBA Apella Wealth, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered or excluded or exempt from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Apella Wealth provides this communication as a matter of general information. Any data or statistics quoted are from sources believed to be reliable but cannot be guaranteed or warranted.
