As you’re reaching your financial goals and accumulating assets, the next step for many people is philanthropy. Here are a few things to think about as you sharpen your philanthropic focus.
A good first question to ask yourself when you’re thinking about giving is, “Is it more impactful for me to give time, money, or both?” This answer to this question is going to be different for everybody. Even if you’re in a stage of life where you don’t have the assets or income to give, you might still be able to give your time. The giving of time is very impactful for many nonprofits because they’re often shorthanded and have a bigger vision than the people currently involved can handle, so even just showing up can help.
For some people, on the other hand, the easiest thing to give is money. If you’ve already achieved your financial goals and have enough money saved for retirement, it’s easy to give above and beyond to causes you support. It might be worth considering whether you’re able to give money AND time so that you can see your money at work, because giving your time shows that you care about more than just writing a check. Nonprofits often do need money, but they almost always need time. As an added bonus, giving your time to nonprofits allows you to see the effect of your donations and the impact you have on your community.
Another thing you’ll want to consider is what you really care about. There are so many causes out there that you can get involved in, like animal shelters, your church, serving food to the hungry, volunteering with kids who’ve had a rough start, and many others. The question is, “what moves you on such a deep level that you’ll be able to fully give yourself to it when you get involved?” Where can you invest emotionally?
Once you’re financially set, it’s easy to just give money. But I challenge you to give your time as well, because then your cause of choice will see how much you really care, and you‘ll get to see the impact of your generosity in motion.
If you’d like to learn how to make your generosity more tax-efficient along the way, click below to schedule a meeting with one of our financial advisors.