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How Does Charitable Giving Fit Into Your Financial Plan?

October 21, 2021

Do givers always gain?  


Does charitable giving fit into your financial plan? As we look towards the end of another year; the season of giving is upon us. Charitable givers do gain, not just financially but in many other ways.  


To be prepared for any charitable donations, our professional financial planners discuss how charitable giving can fit into your financial plan and not only impact you but charities in a more positive way. 



Benefits to Charitable Giving 


We all know that charitable giving, especially financially, is beneficial to that organization. But it is also beneficial to you. Sure, it may seem selfish, but that is perfectly okay too. It’s a win-win for you and the charity. 


Giving to charities offers a wonderful feeling of pride, impact, and satisfaction knowing that you helped make a difference. If you have a family, the act of giving can help provide positive learning opportunities and important conversations.   


Aside from the intrinsic rewards of giving, charitable giving also offers a type of quid-pro-quo idea. And while some may shy away from this idea it can also be positive. Donating money can open opportunities to serve on a board or committee, which allows you to voice your thoughts and concerns, all while developing your leadership skills and persuasion. Non-profits are run by these volunteers and greatly welcome your service. 



How to Make the Most of Your Giving 


If you are ready to give financially, you will want to be smart about it. Giving financially should never give you financial anxiety.  


You will want to make sure you maximize the impact of your charitable gifts as well as seeing if there is some real benefit to you as well. After all, we are addressing how charitable giving fits into your unique financial plan. 


Our financial planners want you to leverage your dollars. Let’s discuss two methods to increase your impact: 



No New Dollars 


This method allows you to increase your charitable giving impact without costing you a single extra dollar.  


Look at your charitable gifts from the past years. Instead of giving many small gifts to a lot of different organizations and charities, take that same amount and give it to one group. You will have a large impact, be a significant donor, and perhaps meet more people with similar interests. 


Review your beneficiary designations. 401(k)s, IRAs, and life insurance do not pass through your will. Name your favorite charity as the beneficiary.  



Giving The Right Dollars 


Taxes are a part of our everyday life, even into death, but the government also incentivizes charitable giving with certain tax benefits. Two of these benefits that individuals get with charitable giving are leveraging the capital gains tax and tax-exempt status of charities. 


With these tax incentives, you can donate to charities because they are tax-exempt. Your giving, even upon your passing, will not be taxable. And this is a great way to help family members, so they do not have to pay taxes on the money that is left to them.  


At Impact Medical Advisors, we recommend leaving life insurance proceeds to family and retirement plan assets to charities. 



When to Give 


As with everything in life, timing is key. When you give financially to charities, you need to be strategic about the timing as well. 


Tax laws have recently changed making it harder to itemize deductions1. One way around this is to make a larger gift in one particular year or to set up a Donor Advised Fund (DAF). By putting your charitable giving into a DAF, you will get a deduction for the full amount in the year. The benefit to the charity is that they can spread out your donation over several years. 


Also, consider being opportunistic about the timing of your gifts. Some years your tax bill is higher, perhaps due to a capital gain from the sale of a home or investment or a large bonus. Let that year be the year you make a large charitable gift. The financial gift will help negate some of the taxes that you owe on your capital gains.  



Ready to Donate? 


If you feel charitable giving is important to you, make sure to discuss this with your financial advisor. This is not a one-time decision. This is a conversation that should be had yearly because every year your financial situation or tax situation may change.  


Whether you are already currently donating or are ready to give, let our advisors help you make the best financial plan that also allows you to make the biggest impact. Call Impact Medical Advisors today at 813-956-3633 or schedule an appointment to speak to our financial planner about your charitable giving.  






Dave Duquette is the President of Impact Medical Advisors based in Tampa, Florida. As a part of Westshore Financial Group, he specializes working with medical professionals across the country. Impact Medical Advisors is guided by our mission ever in mind: to help people gain control of their finances.   





Financial images courtesy of Westshore Financial Proprietary information, and are for illustration purposes only.  


Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.This material contains the opinions of the author but not necessarily those of PAS or Guardian. Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA or provided by Guardian. BLICOA is a wholly owned stock subsidiary of and administrator for the Guardian Life Insurance Company of America (Guardian), New York, NY. Product provisions and availability may vary by state.Optional riders are available for an additional premium.   


Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Impact Medical Advisors is not an affiliate or subsidiary of PAS or Guardian. CA Insurance License #0N14650.  2021-122189 (Exp. 6/23) 




United States Internal Revenue Service, IRS provides tax inflation adjustments for tax year 2021, published: Oct 26, 2020.