Can’t you feel it in the air? There is electricity this year like none before. The spirit of joy and generosity is radiantly pouring out from everyone. This is the season of holidays and giving to others.
Have you ever thought about why people give? In general people support charity for some of the following reasons:
1. Tax benefits. As you probably know, charitable gifts may generate tax deductions, which can be a prime motivation for a gift. Through tax benefits, our government is helping and encouraging us to make gifts.
2. Social responsibility. Some donors support charity because they believe it is their social responsibility to do so. Others feel that if support was not provided, our government may have additional responsibility and expenses, which could be passed on to us through higher taxes or reduced services.
3. Philanthropy. Some donors may want to give money or property to charity because they support the entity’s goals and programs.
4. Publicity. Some donors may enjoy the publicity surrounding a gift and want to be known as a supporter of certain organizations or causes.
5. Memorials. Other donors make contributions to memorialize someone either before or after death.
6. Personal conviction. Some individuals consider charitable giving an essential aspect of their ideals, faith and values. Sometimes they make giving an important tradition to teach their children.
7. Financial benefits. Some strategies can allow donors to get income from their gift. Yes, it is possible to give and receive and there may be tax advantages besides.
How about you? As we approach the end of 2007, what is your reason for giving? What are your year-end gift giving plans? One of the objectives of comprehensive financial planning is to help you create a lifetime gifting strategy. No matter what your age or how much money you would like to give away, I find it often makes sense to examine giving as part of your overall financial and life planning goals.
For more information, contact Rebecca Robins, CPA/PFS, CFP™, CA Insurance Lic#0D75745, at 661-222-2331.