Tag: giving back

Giving Thanks + Giving Back

Published in: Resources |

Thanksgiving week is upon us once more! Turkey, stuffing, mashed potatoes, and, most importantly, an attitude of gratitude. While Black Friday deals have been the talk of the town in years past, in recent years, the push to give instead of buy has arguably been even greater. With Giving Tuesday falling right after Thanksgiving, it’s the perfect opportunity for advisors and other financial professionals to talk with clients about year-end charitable donations.

While Giving Tuesday is about more than just money — it can be anything from making a stranger smile, to helping someone in need, to showing up for a cause that’s important to you — fiscal donations are a fantastic way to make a positive impact on an organization that you care about, as well as in the greater community. (And it doesn’t hurt that charitable giving often offers tax breaks!)

If you’ve been considering a year-end charitable gift, here are a few strategies to consider that can help you make the most of your money.

  1. Establish a Donor-Advised Fund

A donor-advised fund (DAF) is a charitable giving account that allows the donor to make a gift and qualify for a charitable deduction immediately, without needing to decide straight away which charity or charities they’d like to support. Additionally, the money deposited into a DAF can grow tax-free until the donor is ready to recommend a grant.

  1. Give long-term appreciated securities

Contributing stocks, bonds, or mutual funds that have appreciated over time to philanthropic organizations is another method of charitable giving that has recently gained popularity. For starters, based on a handful of requirements and limitations, publicly traded securities and other types of securities may be tax deductible, with the amount deducted in a single year being up to 30% of the donor’s adjusted gross income. Additionally, gifting shares of company stock can help to diversify a donor’s portfolio.

  1. Donate complex assets

Another option is to donate complex and illiquid assets directly to charity. These include real estate, restricted stock, private company stock, and even cryptocurrency. Although these types of donations often require additional time and legal advice, they have a relatively low cost basis, which many donors find appealing.

  1. Consider a bunching strategy

The “bunching” strategy is about maximizing the impact of a donor’s itemized deductions by concentrating deductions in a single year, followed by one or several skipped years. Bunching can work well when a donor’s total itemized deductions for a single year fall below the standard deduction, as contributions for multiple years made at once may exceed the standard deduction and allow for a tax break. Of course, it’s worth noting that this strategy requires the donor to have a significant financial capacity.

Give Back With The Humphreys Group

As a reminder, the deadline for year-end charitable giving for 2021 is Friday, December 31, while the last day for 2021 grant recommendations from DAFs is Tuesday, December 28.

If you’re considering making a year-end gift but are feeling a bit uncertain about the best avenue for you, please don’t hesitate to reach out and schedule a phone call or meeting. Whether you’d like to learn more about the various options for charitable year-end giving or have an in-depth discussion about the strategy that fits best into your overall financial plan, our door is open.

And, of course, Happy Thanksgiving!


How To Instill Charitable Values in Children

Published in: Resources |

The sooner parents or guardians of small children begin to teach charitable values, the better. Here are three areas to consider as you get started.

Lead by example

Children tend to look to their parents or guardians to see how they should respond to various situations, so it’s important to demonstrate positive behavior and act as a role model. To effectively lead by example, it’s important to both show and tell. Demonstrate empathy by giving spare change to someone in need, helping an elderly neighbor unload their groceries, picking up canned goods for a food drive, or volunteering to help out at your child’s school. Children should be taught to understand that other people have emotions and feelings just like they do. Openly discussing the concept of empathy, talking about feelings, and teaching self-awareness and respect can all help to establish charitable values.

Teach financial values and literacy

It’s also extremely important to teach children financial literacy, as it will serve as the very foundation of their lifelong relationship with money. Teach them the importance of saving, spending, goal-setting, and giving, as well as the interconnectedness of each category. Learning financial management is a critical first step when it comes to charitable giving. Read our previous blog for some additional tips on teaching your kids about personal finance.

Explore various ways to give back

At The Humphreys Group, we aim to give back through the three Ts; time, talent and treasure. Here are a few ways to exemplify each.

  • Time. Work together at a food kitchen one night per month. Ring bells for Salvation Army over the holidays. Volunteer through a church or a community center. Showing up and spending valuable time for the benefit of others is a great way to demonstrate to your kids that they are a part of a larger community, and that giving back and helping out can benefit that community as a whole.
  • Talent. Another way to give back (and instill the importance of giving back in your kids) is by donating your talent. If you are a lawyer, that could mean doing pro bono work in collaboration with a local charity group. If your child excels at a specific school subject, say, spelling, it could mean encouraging them to go over flashcards with a classmate who is struggling before the next spelling quiz.
  • Treasure. It’s also important to demonstrate the impact of philanthropic donations and help children understand the power of generosity. One way to accomplish this is by breaking their allowance into two categories: spending money and money to donate. Say you give your child $10 per week, with the understanding that $5 of it is to spend as they wish and the other $5 is to put into a box for the charity of their choice. Once they have accumulated $50, sit down together and discuss which charity they want to donate to. Once they have chosen, begin the process again. Not only is this a great way to instill charitable values, but it also teaches your child about various causes and organizations.

Teaching children that there are multiple ways to live their charitable values can open up an array of avenues for them to give back over the course of their lives. If you’d like to continue the conversation, please reach out to The Humphreys Group.