CHARITABLE GIVING
Long-term gift plans that create tax-smart, charitable impact.
There’s a lot more to charitable giving than writing checks to well-meaning nonprofits. Sebold Capital Management’s financial advisors provide recommendations based on past donations and financial statements, as well as family interests and tax-smart saving opportunities. By increasing your tax savings, we can donate more to the causes you care about and ensure your charitable giving makes a life-changing impact.
The following considerations should be considered when thinking about charitable giving opportunities for your wealth.
Choose the Right Charity
The shear number of organizations that exist, and the varied causes they support, make choosing the right place to trust your wealth a complicated decision. Sebold’s financial advisors spend significant time researching organization’s missions, operations, and outcomes, because understanding how an organization handles investments impacts the potential success of your gift.
Consider Tax Implications
While we understand taxes may not drive your philanthropic pursuits, the aftereffects of your donation decisions can be significant and complex. To make the most of your charitable giving, it makes sense to not only audit the organizations you’re interested in, but also understand your tax-smart saving opportunities.
Choose the most beneficial gift
Your donations can eliminate the capital gains tax and Medicaid surtax, and allow for income tax deductions, but did you know there are limitations on your tax deductions dependant on your income level and the type of gift you are giving? Gifts of cash, real estate, stocks, or bequests all have different tax and cash flow consequences for the charities you choose to support. Plus, timing matters. There are pros and cons to making immediate gifts, and deferring gifts into bequest or trusts.
Involve the Family
Philanthropic interests develop, evolve and refine themselves over time. Involving your family in the planning of your charitable giving from the very beginning will lead to a more intentional and supported plan overall. While families often have different opinions about what to do with their wealth, and aligning everyone’s interests isn’t always easy, creating a clear mission from the start will avoid misunderstandings about intent and priorities later.
Periodically Review and Adjust Your Plan
Creating a long-term charitable plan should be part of your long-term financial planning, and not a one-time event. Alongside your financial advisor, consider your future income, estate planning, potential changes in tax law, and the evolving needs of charities you’re interested in supporting. Thoughtful consideration about what you want your charitable giving to accomplish, and how you expect to accomplish it, will require periodic review and adjustment.
Advising clients on their long-term charitable gift planning is some of the most meaningful work we do at Sebold Captial Management. We look forward to making your planning experiences as highly valuable as possible.