Charitable Giving: do it with purpose and planning

Financial experts estimate that, in the next 10 years, up to $10 trillion will be transferred through the estates of individuals. Their loved ones, as well as the government, are likely beneficiaries — but not exclusively. In addition, more and more people are bequeathing a portion — and sometimes a very substantial portion — of their assets to charitable organizations and other causes they hold dear.

Why giving takes planning
Whether you are pursuing your short- or long-term giving goals, planning is important. Why?
Giving should be a behavior that reflects your values.  What kind of message do you hope to convey through the way you manage and share your financial resources? How do you want to be remembered? Through thoughtful planning, you can make sure such concerns are addressed to your satisfaction.
Loved ones can be spared the responsibility of shaping your legacy.  Even though you are known well by your family and friends, they might be unclear about your wishes and goals. Only you can most accurately communicate and put into practice your charitable intentions. 
Advance notice of gifts can help recipients make the most of the money.  Being aware of their supporters’ intentions can provide some helpful context when setting their organizations’ sights.
You and your heirs can experience tax savings while seeing your gifts grow.  Giving is primarily a matter of the heart. Regardless, smart decisions around the financial implications of your giving can ease the tax burden on your heirs and possibly increase the final amount received by your charity of choice.

Get with the program
Many non-profit and financial services organizations sponsor programs that guide philanthropists through the “whys” and “how-tos” of charitable giving. Often, these programs present the benefits of charitable giving in light of tax and other financial implications, introduce innovative methods in gift-giving, and offer workshops to help people prepare their charitable giving strategies. 

Good programs also encourage involving the expertise of others (i.e., financial services professionals, accountants, attorneys) in the planning process. If you have not already discussed your charitable intentions with your group of professionals, consider seeking their insight soon.

Rick Hart, FIC, is a Financial Associate with Thrivent Financial for Lutherans in Walled Lake, MI. He can be reached at 248 896 0160. Thrivent Financial for Lutherans is a Fortune 500 financial services membership organization helping nearly 3 million members achieve their financial goals and give back to their communities.  This column was prepared by Thrivent Financial for use by this representative.

Neither Thrivent Financial for Lutherans nor its respective associates provide legal or tax advice. For complete details, consult with your tax advisor or attorney.

Registered representative for securities offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN, 55415-1665, 1-800-THRIVENT (800-847-4836), a wholly owned subsidiary of Thrivent Financial for Lutherans. Member FINRA. Member SIPC.