By: Susan Shackelford
These days, many people are finding themselves discouraged. Over the last few years, we lived through a pandemic. As a result, we have seen company shutdowns, small business closures, job losses, and significant economic fallout. We all want to see change, but where do we start?
In the US alone, there are nearly two million not-for-profit organizations and charities. According to Define Financial, over 80% of all donations to charities and nonprofit organizations in the US come from individuals. That means the majority of those giving are individuals and families, not corporations.
The need is great but so are the benefits of giving! Not only does charitable giving benefit the organization, but when families decide to give together, it can have a lasting effect on our families. Additionally, it’s very good for our health!
Transfer Your Values
When we have children, we wonder who they will become. Will they be kind, care for others, be generous? As parents, we are given the opportunity to try and instill in them our values. As many of us know, values are caught rather than taught!
When giving is part of your family culture, your children view the world in a more positive way. Including your family in your giving plans provides them insight into what your values are and the impact giving generously has in your community.
Making a Plan
Plan a monthly meeting with your family to address the following questions:
- What are we passionate about?
- What needs do we want to see addressed?
Use this conversation to decide where you want to place your giving. Give each family member a turn to decide where your donations will go each month. Make the holiday season a time to give extra. Take it to the next level and get involved. The most beneficial thing you can do as a family is to find a way to personally participate in the organization. Not only are you taking the steps to model your values to your children, but you get to spend fun, quality time together.
Establishing a Donor Advised Fund
Time to get the ball rolling! Setting up a Donor Advised Fund (DAF) is a great way to prepare for your charitable giving. A DAF is a giving account that is established and administered by a public charity. DAFs are created to help organizations, families, and individuals manage their charitable donations.
DAFs can have substantial financial benefits. For example, you can donate appreciated stocks and, thereby, avoid capital gains taxes. Additionally, depending on your specific situation, the gift may be deductible.
Establishing a DAF requires planning and careful implementation, so meeting with your tax and wealth advisor is the best way to begin. They will work with you to determine whether the strategy works in your overall plan. Then they will assist you in establishing the account and distributing the funds where directed.
At KEB, we have dedicated the last 90 years to helping communities grow by sharing time and resources. Our goal is to make a measurable difference in the communities where KEB families live and work. Please reach out to us to begin the process of creating your Family Giving Plan. We believe giving generously will have a huge impact on our communities and families. Let us help you help others.