You have worked hard and are in a fortunate position to financially support causes you care about. However, as you wouldn’t buy a car without first doing some research and ensuring it performs well afterwards – should you be donating your money without much thought or follow up?
As Warren Buffett famously says – “making money is far easier than giving it away effectively” and effective giving means planning.
So what is “planned giving” and are there really any benefits to you, as a donor?
Planned Giving involves taking a more engaged and thoughtful approach in your giving. It commonly involves a structure, such as a foundation, subfund within a public ancillary fund or giving circle. In all of these situations, you decide to commit money in advance, work out the causes you want to support and determine what successful giving means to you. You then select charities that best fit what YOU are looking for and will make the social impact you are seeking.
While this might sound like a lot of work, it is truly rewarding.
A planned giving approach enables you to enjoy the benefits of your generosity at a much deeper level and for much longer periods, compared to making a random donation.
The 2016 Fidelity Charitable report on Giving in the US, uncovers finds some remarkable differences between a planned giver (i.e. a Fidelity Donor) and a non-planned giver.
Planned Givers are more likely to bring family into giving decisions – providing a great tool to teach your children or relatives family values and stay closely connected
Planned Givers can better sustain giving in retirement compared to their Affluent retired counterparts.
Donor-advised funds often help donors better plan for their giving. For example, a donor with a high-income year can use a donor-advised fund to spread out support and give more over time.
Interestingly, more than half of non-profits received support from just one donor – reflecting the diversity of support provided by donors who have a subfund
Compared with volunteers nationwide, Fidelity Charitable donors spend more time volunteering for more organisations
Four in 10 Fidelity Charitable donors say they have a bequest or charitable legacy vehicle, more than twice the number of affluent donors nationally.
While planned giving isn’t everyone’s cup of tea, it can serve as a great tool for individuals, families, member associations and businesses to maximise the benefit of their generosity, engage others in giving and truly understand the social impact they are making.
At GivingSimple, we can help you commence a rewarding and thoughtful giving plan. Please get in touch with us to learn more.