The Rea Report Summer 2018 | Page 10

Sharing The Wealth Getting To Know The Various Ways To Give I have the privilege of helping clients build, protect and share their wealth. And while our discussions cover everything from retirement planning and investments to insurance and taxes, the conversations I enjoy most are those that allow me to help clients share their wealth with others. When you plan to part with a substantial portion of your wealth to make a positive impact on something you care deeply about, it’s important to reflect on the reasons for choosing to make such a financial commitment. It’s also important to know what options are available to help maximize the impact of your donation. Why Will You Give? Before donating to a cause or organization, reflect on why you want to give as well as the desired impact you would like your donation to have. ASK YOURSELF: 1. Will my philanthropic efforts reflect my values and the values of my family? 2. What change or impact do I hope to make? 3. What issues will my donation address? 4. How can I maximize the impact of my donation? By Doug Feller, AIF©, CFP©, CFA, principal and financial advisor, Investment Partners, LTD, [email protected] (Dublin office) • Charitable Trusts: A more complicated option, charitable remain- der and lead trusts are often used for splitting the beneficial inter- ests between charities and non-charitable beneficiaries. • Private Foundations: This option is sought after due to its flex- ibility in meeting the 5 percent distribution requirement, which enables the gift to be made beyond traditional 501(c)(3)s, such as gifts to individuals or programs related equity investments or loans. This option requires an additional cost to create and administer. • Qualified Charitable Donations from IRAs: For those older than 70 ½, this option allows you to gift up to $100,000 to satisfy your required minimum distribution. How Will You Pay It Forward? Regardless of your gifting method, don’t forget to let your passion guide your actions. While the most common donation method is an outright gift – often cash or securities, it’s helpful to know what other options are available. For example, I have a friend who is passionate about teaching his children the importance of charitable giving. So, every Black Fri- day, rather than partaking in the consumerism of the day, his family gathers to discuss which organizations and causes to support from their donor-advised fund. Each family member comes to the table prepared to make a well-researched case for the causes they care about. Then, they decide which gifts to make and for how much. In this way, they are able to share their passions and make informed decisions as a family. Together, they let their collective passions guide how they give. • Donor-Advised Funds: This popular option features low mini- mums, simplified administration, no spending requirement and the ability to “advise” your chosen sponsor organization of the grants you want to make to qualified nonprofits. Your unique financial circumstances will ultimately determine which charitable vehicle is right for you. Consult your attorney, financial planner, local community foundation and tax advisor before moving forward with any gifting strategy. How Will You Give? Before donating to a cause or organization, ref lect on why you want give as well as the desired impact you would like your donation to have. 10