aura wealth advisor
09 Feb

Make Charitable Giving a Part of Your Wealth Management

On: 9th February, 2016   //   By: admin

Wealth Management That Includes Giving Helps Build a Legacy

When an organization wants you to contribute a portion of your wealth to its cause, they often remind you of a key benefit: it’s tax-deductible. While this is certainly a notable benefit, for many investors, giving is about more than a tax benefit. Charitable giving is often a key part of and leaving a legacy of giving back.


Here are some considerations to discuss with your advisor the next time you meet to discuss wealth management.


How you approach giving can vary. Many investors like to think about carefully planning and investing in a cause they care about. Others are more focused on having funds available when they encounter someone that has an urgent need. Both are admirable and important ways of giving, but they require different approaches and one might fit your personality better than the other.


If you’re spontaneous, and you often find yourself moved by a plea for assistance, you might be more comfortable with having some cash at the ready for giving. If you’re a careful planner, however, with a passion for a couple of particular causes, you might prefer to strategically plan where to give. You can also do a mix, planning with your wealth advisor to give to a few important causes, and then keeping a little extra money available for unexpected petitions for help.


If a legacy is important to you, talk about it with your advisor. Your wealth can be a powerful tool for improving the world in the ways you care about most. Your advisor will ask you a few questions to get a clear idea about the causes that are important to you, and then will help you choose a high-quality charity with an excellent reputation that will be a good place to invest. There are ratings systems, like the one used by Charity Navigator, that assist investors with choosing a charity that will use your money well.


Make a plan and stick to it. If you’ve decided that donations over $200,000 must be used as a match to encourage organizations to raise awareness and drive in funds, for instance, then stick to that plan. One of the benefits to creating a wealth management plan is that you are not forced to make decisions over and over again, but instead create personal policies that govern how your giving is executed.


Decide how much input your want to have. If you want some control over how the funds are used, you may want to explore the options a charity provides for your involvement. Some charities allow you to designate what the money should be used for; however, this may also depend on the size of gift you provide.


Aura Wealth Advisors will help you develop a wealth management plan that includes a discussion of the causes most dear to you. Whether you want to create a legacy, boost the effectiveness of your favorite charity, or if you are initially just interested in the tax benefit that comes with giving, we can help you navigate decisions about charitable gifts. Call us today to set up an appointment, and we will look forward to talking with you.

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