Should I give to charity now or later?
Deciding when to give to charity—while you're still here to see the impact or as part of your legacy—touches on both practical and emotional aspects of giving. Each approach has its merits, and understanding them can help align your philanthropic actions with your personal values and financial goals.
The Joy of Giving Now
There’s a unique satisfaction that comes with giving to charity during your lifetime. You get to experience the impact of your generosity firsthand. Whether it's seeing a community benefit from your contribution or knowing you're actively making a difference, the immediate feedback can be incredibly rewarding.
Financially, giving now also allows you to enjoy tax benefits that can potentially reduce your taxable income each year you contribute. It can be a way to manage your finances while supporting causes important to you, allowing you to witness the ongoing benefits of your generosity.
The Benefits of Planning to Give Later
Leaving a charitable gift in your will, however, is about creating a legacy that outlives you. This method can help ensure your values continue to influence the local community or world even after you're gone. It can be a profound way to be remembered, leaving lasting marks on the organizations and causes you care about.
Additionally, including charity in your estate planning can have potentially significant tax advantages for your estate. It might reduce estate taxes, which would increase the likelihood that more of your assets go towards your philanthropic wishes rather than to tax payments.
Mixing Both Approaches
Of course, there’s no rule that says you must choose one or the other. Many people find a balanced approach fits best. This could mean making smaller donations now and also including a provision in your will for larger contributions. Such a strategy provides an opportunity for your giving to have an immediate impact and enduring presence.
Considerations for Making Your Decision
The decision on when and how to give is deeply personal and depends on a variety of factors:
- Financial Confidence: Ensure that your generosity does not compromise your financial stability.
- Family Considerations: Discuss your intentions with your family. This can help align your philanthropic goals with family expectations and avoid any potential misunderstandings.
- Personal Satisfaction: Reflect on what gives you more joy—seeing your contributions at work now or knowing they will create a lasting legacy.
Engaging in thoughtful planning and possibly consulting with a financial or legal advisor can help you navigate these considerations. They can provide guidance on how to structure your giving to help meet your personal and financial objectives effectively.
Conclusion
Whether you choose to give now or to leave a bequest, what matters most is that your charitable actions reflect your values and intentions. Both paths offer meaningful ways to contribute, and combining them can maximize the benefits to both you and your chosen causes. As you consider your options, think about what will bring you the most fulfillment and how you want to be remembered.
Any opinions are those of Mark Vivian and not necessarily those of Raymond James. This information is intended to be educational and is not tailored to the investment needs of any specific investor. Every investor's situation is unique, and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.