Philanthropy
There is a difference between philanthropy and charity in the same sense that there is a difference between giving a man a fish and teaching him how to fish. We find that with persons who have accumulated wealth they are not interested in so much as making a contribution but in making a contribution that they believe will make a difference.
One of the true privileges of accumulating wealth is the privilege of deciding how to give it away and give it away you must either to your heirs, to charitable and other non profit organizations, or to the government. The part that you cannot leave to your heirs, the part that must go either to charity or to the government, we call Community Capital, that is, capital that must be used for the benefit of the entire community. The question is, who will decide what is the best use of that money: you or the government.
Fear of the government spending their Community Capital is the motivation that brings many clients to the threshold of philanthropic planning but once there they encounter a new world of possibilities. They get beyond the notion of simply leaving it all to the kids and discover the importance of transferring their values as well as their valuables. They explore the ways in which they might want to benefit their favorite cause themselves or establish the means for their heirs to be the benefactor. With appropriate planning our clients can keep more of their income, can pass on a greater inheritance to their heirs, and make substantial gifts to the charities of their choice, all in lieu of taxes. Once a client gets it, the planning process explodes with joy and excitement. “What legacy do I want to leave?” is a far more interesting question than asking how much will my heirs have to pay in taxes.
One of the more interesting statistics about charitable statistics is the number of people who donate and who receive no tax benefit whatsoever. For those who are of modest means but who have a charitable intent, the charitable gift annuity is a strategy often overlooked. This strategy is particularly helpful to those who rely on income from certificates of deposit and other low yield investments and who would appreciate greater income without substantially greater risk. In the end, charity begins at home. The big question is: how do you define home?
One of the true privileges of accumulating wealth is the privilege of deciding how to give it away and give it away you must either to your heirs, to charitable and other non profit organizations, or to the government. The part that you cannot leave to your heirs, the part that must go either to charity or to the government, we call Community Capital, that is, capital that must be used for the benefit of the entire community. The question is, who will decide what is the best use of that money: you or the government.
Fear of the government spending their Community Capital is the motivation that brings many clients to the threshold of philanthropic planning but once there they encounter a new world of possibilities. They get beyond the notion of simply leaving it all to the kids and discover the importance of transferring their values as well as their valuables. They explore the ways in which they might want to benefit their favorite cause themselves or establish the means for their heirs to be the benefactor. With appropriate planning our clients can keep more of their income, can pass on a greater inheritance to their heirs, and make substantial gifts to the charities of their choice, all in lieu of taxes. Once a client gets it, the planning process explodes with joy and excitement. “What legacy do I want to leave?” is a far more interesting question than asking how much will my heirs have to pay in taxes.
One of the more interesting statistics about charitable statistics is the number of people who donate and who receive no tax benefit whatsoever. For those who are of modest means but who have a charitable intent, the charitable gift annuity is a strategy often overlooked. This strategy is particularly helpful to those who rely on income from certificates of deposit and other low yield investments and who would appreciate greater income without substantially greater risk. In the end, charity begins at home. The big question is: how do you define home?