As your clients gear up for another year of giving, how can you help them make the most of their good intentions? Consider helping clients plan their charitable giving budgets around three points—amount, timing, and category.
- How much? That’s the $64 question. Likely more, depending on the client’s budget. Something for clients to keep in mind when setting a budget for supporting favorite causes is that giving money isn’t the only way to do good. Clients should also celebrate other social impact activities, such as volunteering, serving on a board, donating gently-used clothing, purchasing products that support a cause, or marketing favorite charities through social media. It all counts. Clients can set annual charitable giving budgets based on what makes sense for their families. Keep in mind that a donor advised fund at the FM Area Foundation is a great way to organize financial contributions to favorite charities.
- How often? Charities are looking for support year round. Consider suggesting that clients spread giving throughout the year. Their tax deductions are unaffected, and they’ll be giving the organizations they support a much-appreciated boost to cash flow.
- Who gets it? Most people support a wide variety of charities. To help your clients see where their dollars are going, suggest they sort the recipient organizations into major categories of social impact. For example: Community Development, Arts & Culture, Children & Families, Health & Life Science, Education. Keep in mind that religious giving frequently falls into one of these five categories, depending on the gift’s purpose.
As always, the team at the FM Area Foundation is here to help you as you work with your philanthropic clients. We look forward to collaborating in 2020!