Charitable Giving

Giving as Part of Your Financial Planning

While philanthropists donate to charities because they believe in their causes and want them to continue the good work they do, charitable donations reduce your taxable income so can also be used as part of a tax reduction strategy. Even following your passing, including charities you support as a beneficiary of your estate can provide tax relief for your estate.

Here are some common ways people include charitable giving as part of their financial planning strategies:

• Your Will – just like you can name your spouse, children, family and friends as beneficiaries of your estate, you can also name charities as beneficiaries. On your passing, the charities will receive whatever part of your estate is left to them.
• Life Insurance Policies – likewise, charities can be named as beneficiaries of life insurance policies, and doing so can make some or all of the premiums tax deductible. On your passing, the charity would benefit from the payout of the policy.
• Trust Funds – trusts can be used if you want to provide legacy support over a longer period of time instead of a lump sum payment. By establishing and building the trust the charities you wish to support receive multiple payouts over a period of months, years or even longer. Annual scholarships at your alma mater are an example of a trust fund.
• Investment Accounts – like monetary donations, unused balances of investment accounts can also be donated to charity. This provides some tax relief for your estate, but because charitable donations are tax free, the charity will benefit from the entire account balance.

Let us help light to path to continuing to support the charities that mean so much to you as part of your financial planning strategies. It’s a legacy you deserve.

Changing With the Different Phases of Life

Your outlook on charitable giving might naturally evolve with the different phases of your life.

In the beginning, with priorities of buying your first house and starting your family, your charitable contributions might align with having extra money in the bank or sharing some of a monetary gift you’ve received. But later, as you have higher levels of discretionary income and see the effects of the work charities do, you might want to make bigger or more frequent donations. As you enter your retirement years, you might wish to support local and community charities with your time and money.

Let BeaconPoint Financial Security light the way to charitable giving along every step of your life journey. We can help you understand how much you can give, and create the right financial security strategies so you can support the charities that matter most to you throughout and even beyond your life.