Giving

What is Your Why for Charitable Giving?

When disaster strikes, our natural tendency is to help. When disasters hit us, we are thankful to the agencies and folks that help us. In 1998 there was a flood that hit our area. I was grateful to the Red Cross who came to our small town with food and a helicopter for any medical emergencies. Most of our roads were more than unpassable; They were destroyed. Living through that experience gave me a new appreciation for the power of water and a great respect for Mother Nature.

When I started this newsletter I was focused on the devastation across Vermont and the wildfires in Hawaii and Canada. Now, as I get ready to send it out, there are so many more disasters of note: floods in Libya, earthquake in Morocco, wildfires in Greece….And for too long now, the man-made war in Ukraine.

I was raised to help those in need. Professionally, I appreciate giving in a new way. Plus, I understand today there are so many in need. 

Where you chose to give is as important as what you give. Rather than impulsively giving, it is important to give to causes that resonate with your heart. Helping in a natural disaster is great. Beyond that, are you donating regularly to causes important to you. These choices count because giving needs to matter to you in addition to the amount of money you give. Where your money goes needs to be in alignment with who you are and what you value. Then, you are helping to improve the world whether it is a local community organization or a global worldwide effort.

How you give is as important as when you give. Those who give on a regular basis from their paycheck, credit card or bank account automatically are often called “sustainers” for the charity. However, I have found that more people forget they are giving this way, which is not consciously caring for their money or charity. I encourage them to also give in other ways much more consciously: write a check each time you receive a bonus, gift, or each month. By making the effort, then you will have the reminder of the good you are doing in the world. And do not do it all at once for the wrong reasons which include on impulse, guilt, or other benefits. For example, many people race to the end of the year to make monetary donations, so they claim the tax benefit – limited for some taxpayers but more extensive for others. 

If you are reading this and thinking, I am in debt and cannot give. Decide here and now to donate something. Not much money? Give even a dollar a month in addition to giving some of your time. Donating can be powerful for you when you share consciously what you have. 

Have plenty of cash to support your non-profits? Give money and give your time. Seeing what your money does on the front lines has an impact on you and the people you support.

There are so many ways to support those in need and those trying to make the world a better place. Giving Time, Talent and Treasure are key aspects. Aligning with your values and priorities is essential. And most of all, donating consciously and open-heartedly. 

Doing my part of sharing I would like to give you some ideas and give tribute to those doing their work throughout the world.

If you have been thinking about giving some money to organizations in response to what has been happening worldwide and do not know where to start, I offer some information and links below:

Through professional contacts, I have learned of the following places to donate in Hawaii and Canada:

Giving in Vermont: 

  • Vermont Community Foundation started a fund to help flood victims

  • Capstone has been on the front lines in Vermont for decades and is one of the hardest hit areas providing food, shelter, and service to those in need.

  • One of my personal favorites is Vermont Adaptive. Vermont Adaptive is not the only place I give or volunteer. They just resonate with my love of sports and sharing with the population I have worked with since I was teenager. I have learned much from these well-rounded athletes and am grateful for the time to serve. Two of Vermont Adaptive’s athletes were stars in the Champions movie with Woody Harrelson that came out this past Spring. (Great movie!)

Charitable Giving: Teach Your Children Well

Children can understand charitable giving and helping others.  No age is too young to start.

With your kids of all ages, get them involved.  Create a change jar for giving to charity.  Each month or so decide as a family where to donate the money.  Then, if you want, roll the change or take it to the bank for counting with your child.  Writing a check is great but taking the money to the charity together is a tangible lesson.  Children learn in all ways including seeing and experiencing the location and people you are helping.

Some families donate time together.  They go and work at homeless shelters providing holiday meals or make it a monthly time to support their favorite charity. Making it age appropriate to your children is a perfect hands-on lesson.

My grandmother you to hand me a dollar to put in the basket at Sunday Mass. Yes, this was a start of a lesson.  However, the more intentional and planned and discussed donating is, the better the long-term outcome. 

Yes, as a parent you have plenty on your plate.  Teaching your child about charitable giving is a two for one accomplishment.  You are teaching your child about your values and helping others.  Plus, the giving circle will continue as they practice in future years the giving that you taught them. 

Remember, the dollar amount does not count as much as the action.  The attitude of gratitude is enhanced with giving.

Charitable Giving and RMD's

For those 70 ½ you can give directly to charity with your required minimum distribution.  Why is this important? 

Those over age 70 ½ need to take Required Minimum Distribution (RMD) from their non-taxable retirement accounts.  This means an annual distribution from the Traditional IRA, 401k, 403b or Thrift Savings account that was contributed to with tax-free contributions and grew tax-free.  The RMD does not affect Roth IRAs.

If this means you will be getting a RMD before the year end, consider this – your RMD from a Traditional IRA can go directly to charity.  This is a tax-free transfer if the money goes directly from your IRA retirement account.  This does not apply to your other retirement accounts unless the 401k or 403b is first rolled over to an IRA.

If you tend to give to charity a similar amount to your expected RMD, this type of planning needs to be in your financial tool box.  Not only will it save taxes because the RMD is not counted as income, your income will be lower than if you took the money and wrote the check to charity.  This is critical in planning cash flow because Medicare Part B premiums are based on your income.  Here in Vermont, property taxes are also based on annual income.  Removing income from your tax filing may help you in other ways. 

The law, which allows tax-free transfers of up to $100,000 from an IRA to a public charity is a great opportunity for 2017. Just remember, you will not be able to use the charitable deduction again if you itemized for your taxes.

Move quickly because though this is a possibility for the tax year ending December 31st, your financial institution is busy this time of year.  You will want the request and paperwork to be in process before December 15th to be sure this happens in a timely manner.

Finally, review with your tax advisor to see if this makes sense for you.

Giving In November With Thanks: Finding A Review on Your Charity

How do you know your charity is doing a good job?

Though we are great shoppers, we often do not research the causes we give to.  We are spending time on-line finding the best price, but many donors give without true knowledge of the charity.  Some charities names may sound good and they asked for money, so we give.  Before you give, investigate. 

There are two websites that analyze the charities for their fiscal responsibility and their true nature of helping the causes they represent.  If an organization is spending 50% of their money on administration costs, for example, they may not be the best place to give your donation.  Check out: Charitynavigator.org and Guidestar.org

 

 

The Best SuperBowl Ad

The Super Bowl has been known for its ads for years.  The cost of the spots as well as their creativity.  The game had special meaning for me this year as a Patriots fan.  I love a good football game and I got it on Sunday.  The bonus was the Patriots winning.

What lingers with me most two days later? One commercial.  The commercial itself was powerful.  The public service announcement advertisement was unique in showing help was out there for domestic violence victims.  The amazing fact that this spot was shown during the Super Bowl did not escape me.  More revealing was knowing that the NFL funded the profound segment.  Something's changing and I appreciated this visual and financial acknowledgement. 

Only when I went looking for this add did I learn the dialogue was from an actual call.  What a fabulous, smart, strong woman! Remember, domestic abuse can happen to anyone.  Let's hope this minute continues to run and the message saves a few more victims. 

If you missed the anti-domestic violence psa, you can watch here: 

Power of the Heart Felt Giving

Today I had the privilege to be present for the announcement of a magnificent gift to our local hospital, Fletcher Allen Health Care.  A $13 million dollar gift of business property which included two buildings and 15 acres was given by Bobby and Holly Miller.  This was truly magnificent.  Not just the generosity of the gift, but the team effort and impressive words and actions demonstrated from the couple.  First it was apparent they made the decision together. Second,  they were open and both spoke when the gift was announced.

Sheer pure generosity in action, bought tears to my eyes and an expansive warm feeling to my heart.  This amazing couple demonstrated  more by their  actions and followed up with their words their appreciation to the hospital.  Holly’s reminisces of growing up in the community and having used the hospital often  as  a family.  Yet, bill collectors were the one who got paid one to two dollars a month, because her family of origin had so little money.

How poor they were.  Yet what a generous heart was planted in those days.

May generosity bud in you from your memories.

Happy Spring.