Greetings! I trust that this will find you well and enjoying life.
From the perspective of financial success giving something back is foundational.
Despite lower tax incentives, charitable donations are as strong as ever. Contributions from individuals, companies, foundations and bequests in 2013 totaled more than $335 billion — nearly as much as the pre-recession peak.
High net worth individuals increased their giving by 28 percent in 2013, according to recent analysis by the 2014 U.S. Trust Study of High Net Worth Philanthropy. Moreover, the percentage of wealthy households that made contributions increased from 95 percent in 2011 to 98 percent in 2013. Interestingly, across both good and bad economies, low-income Americans tend to donate a higher percentage of their money as compared to the upper and middle class.
Despite the fact that charitable giving has increased in recent years, only 20 percent believe that their charitable giving plan is effective and only 41 percent are highly satisfied with the impact it makes on society.
With so little faith in the impact of their donations, you might wonder why so many high net worth individuals continue to make charitable contributions. The following are seven reasons why it may be a good idea to develop a charitable giving plan. I favor the first reason.
1. Make a difference in the lives of others
2. Support organizations that represent your passions and values
3. Establish a family legacy by personalizing the name of your foundation or fund
4. Take a current income tax deduction
5. Remove gifted assets from your estate
6. Remove any future appreciation that could be earned by your gift from your estate
7. Enable charitable organizations to benefit from future appreciation of your gift
If I can help with this or any other financial information, don’t ever hesitate to call.