CHARITABLE PLANNING
People give to charity for many reasons. Most of us support our church or other organizations, at some level, through annual gifts. The activities of religious and charitable organizations touch the lives of most of us, fulfilling many needs that may not otherwise be met through public programs. Whatever the reason, it is clear that charitable giving is an important part of our country's socioeconomic structure. As individual wealth increases, more people are including charitable components in their estate plans. Some are seeking tax benefits while others have purely personal motivations for giving.
Giving and Taxes To encourage charitable activity, the tax law has long given favored tax treatment to charitable contributions. As our tax system has become more complex, the laws governing charitable contributions and the strategies to reduce taxes through philanthropy have similarly evolved in their complexity. We understand the techniques of charitable giving, both basic and sophisticated, and will work with you to evaluate the best approach for meeting your charitable objectives and achieving the best tax results.
Philanthropic Planning We believe that philanthropic planning is part of a complete financial plan. Once people understand the options and the tax, financial, and investment benefits, we have found that many, even those who may not have been charitable before, choose to provide for charity either through current gifts or through their estates.
Effective philanthropic planning is predicated on the notion of choice. The power of charitable giving is perhaps best understood when you acknowledge that there are only three places the wealth you do not spend can go. Your unspent wealth can go to:
1. Your family or friends
2. Charity
3. The government as taxes
When you leave wealth to your family, the government shares in the bequest. When you give to charity, the government is left out, but so is your family. For many people, there is an optimal point -- a point where your family receives enough, charity receives something, and the government's portion is minimized. |
