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– Everybody believes in a good cause. This is especially important now that many people and organizations are suffering from the coronavirus pandemic. People are eager to help causes that they care about by volunteering, donating goods and services, or making financial contributions.
You will have different opportunities to make a financial impact on a cause important to you throughout your life. Your financial resources might be less or more spread out if you are younger and just starting out. This could include home purchase, student loans or starting a business or a family.
Financial planning professionals recognize that people want to support meaningful organizations without compromising their other financial goals like repaying debts or planning for retirement.
The CFP Board is a non-profit organization that supports professional standards in personal finance planning. It can help people assess their financial situation and budget for charitable giving.
“A CFP professional can help you clarify your financial objectives and determine which charitable giving options are best suited to help you meet your goals,” says Marguerita Cheng, CFP®, a CFP Board Ambassador.
Planning should consider your personal circumstances. Do not cut back on your monthly housing, loan, and other essential expenses. If you are unable to pay these, consider giving money to charities.
Additional tips to maximize charitable giving
Maximize your cash. Many employers match charitable donations. You can also deduct the entire amount by writing a check directly at a charity, rather than paying for a fundraiser. Research the organization to find out how much of your donations are directly supporting its mission.
Stick to your plan. It is easy to spend too much on charitable giving during times of need. Priorities are important. Choose your top charities and send your money there. This is better than spreading your resources thin. Consider whether yearly or monthly contributions are more appropriate depending on how consistent your income is.
Think beyond the box. It doesn’t take much to make a difference. You can make a side income by selling your skills or interest. Donate the money you earn by selling your time at a vacation house when it isn’t being used.
Visit letsmakeaplan.orgFind out more about the CFB Board or get tips and advice to help you make charitable giving part your financial planning strategy.
