Charitable Giving

1,788 Views | 19 Replies | Last: 5 days ago by bigtruckguy3500
P.H. Dexippus
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AG
With the end of year upon us, I wanted to start a discussion regarding charitable giving in general, and the particular strategies/philosophies the board subscribes to. I'm not sure if I am doing it "right" or the best way. I am also hoping for some inspiration from others. Some prompts:

  • Why do you give?
  • How much do you give and why? (more, less or exactly 10%, and is that net of taxes)
  • What are the best strategies for giving? (stacking contributions, donor advised funds of appreciated assets, etc.)
  • What causes/organizations do you give to?
  • What are some excuses you have to overcome when giving? (taking away from your retirement goals, lack of charity by others, poor stewardship of money, procrastination, etc.)
We give out of a sense of religious duty and because it brings us joy. We give exactly 10% net, with the majority going to our local church but a handful of other organizations such as foreign missions, women's shelters, orgs that fight human trafficking, adoption assistance. We stack contributions two years at a time and use a donor advised fund. I am a greedy/selfish person by nature, and can struggle with giving away what I've worked for when I know the government is already so involved in social services and when I think about how I could retire earlier or drive a nicer house/car/etc without giving. But I also know that is shortsighted and when my time is up on this earth, the earthly stuff I've accumulated will no longer matter.

How do the financial pros on here do giving, if they do?
YouBet
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AG
My wife and I have failed this part of our life the last two years. We've had a lot of personal change in our life with job changes, health crap, and a major move so I had to redirect funds elsewhere to buffer us for all of that change.

Quote:

  • What are the best strategies for giving? (stacking contributions, donor advised funds of appreciated assets, etc.)


Regarding this bullet, I can't recommend the Fidelity Charitable Giving platform enough if you primarily give to individual charities. I'm not sure if other financial platforms have a similar feature, but this lets you centralize all of your giving into one spot greatly simplifying the entire process.

Instead of tracking all of the individual giving you do, you just have to track the money you transfer to FCG. You can then research and give to pretty much any legitimate charity that exists through the FCG platform.
lunchbox
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For my job and my wife's primary job (bigger paycheck), we give 10% of gross to our church (budget, missions, etc.).

For my wife's 2nd (smaller) check, we give 10% of gross to various faith-based charities that we feel connected to (CURE International, crisis pregnancy centers, etc.).

On top of that, we will give what we can when asked. For example, we contributed to my brother's mission trip earlier this year and have sponsored some scholarships for students to go to summer camp.
LMCane
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as a Single wage earner towards the high end of the salary range the "standard deduction" has always been much better than itemizing charitable giving.

I don't even track my donations anymore.
one safe place
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We have never really targeted the 10%, my wife has at times. We do not contribute to any of the national, name-brand charitable organizations (Red Cross, etc). Our contributions are largely to our church which has a large budget for community outreach and an active men's group (one thing we do is build wheelchair ramps for people who have the need, storm repairs, etc.).

We participate in funding the purchase of coats for schoolkids and other supplies every year.

We used to contribute to an organization that provided things for (way too young) single moms. Typically the baby daddy is not involved or very young himself and often the girl's parents have disowned her so she is pretty much on her own support wise. This organization required them to attend parenting classes and such and in turn provided the things needed for a baby and a mom. The entity is no longer around, though I wish it was.

We do spur of the moment things, like when I found out about a 15 year old girl with an infant and the dad of the baby just abandoned them. She couldn't drive, the city was about to turn off her power, she had no food. So a coworker (who knew about this situation) and I went to buy a shopping cart of food and supplies and arranged for the power not to be turned off. Never met the girl but have learned her situation has improved a great deal.

When our school's athletic booster club has camps for various sports, we will provide scholarship money for those in charge to use to pay for the cost of some kid that could benefit from the camp, or has friends going, but who cannot afford to attend. Always makes me smile when they tell me the final head count of who they gave a scholarship to so that I can drop off a check.

I have donated to a somewhat national organization called History Flight. They are involved in locating our military dead who are still missing and identifying those they find. I have witnessed their work on Tarawa and found them to be an amazing group of people.

As to why we do it, well first and foremost my wife is an amazing and generous person. Always preparing meals for older folks or sick folks. As for me, I feel that we have been extremely blessed in our lives and though we somewhat struggled early in life, we no longer do. I think it is the right thing to do, to help people who need help, sharing what you have with those in need. We are not heroes nor do we seek recognition for what we do, and there are many in our community who do the same or more than we do.
Z3phyr
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I donate to an NIL fund so we can give an 18 year old a couple hundred thousand dollars to sit on the bench and then transfer somewhere.
ABATTBQ11
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AG
I give about 5% gross in tithes to church along with various other things throughout the year.
Sims
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AG
We tend to give without numbers being the basis. When the various orgs send us stuff at the end of the year, we get a sense of the numbers then. I've found for us personally, when things feel tight and we slow or stop our giving...we feel worse off. Our church tithe is really the only thing with any $ target. We also give supplementally above our tithes for different campaigns at church.

I focus on being more generous with my time than my money. I feel like donating my time is my primary goal and money is just a less valuable substitue when I can't be involved personally.

When we planned our giving out to the nth degree, I felt restricted by that plan mentally. "This cause isn't in the plan, let's wait until next year then we'll get involved..." I love to give, I've been given lots. I enjoy the tax deductions that come from giving, but if those went away, I wouldn't stop. Being a good steward necessarily means you take advantage of those opportunities as they present themselves. You can't respond generously in the moment if generosity hasn't already been planned into your life.

One of the things that I think planning your giving can do to you is that it closes your eyes and ears to some degree to the hurts and needs in your immediate sphere. You're the hands and feet, so to speak, and I think we can do others a disservice by just abdicting that duty to someone else by supporting them financially. [Please read that last statement charitably - I don't mean it as pejorative toward supporting different organizations...I just mean it in that sense that you can support those organizations AND continue to be sensitive to the needs around you that those orgs aren't or don't serve.]

As to your question about what is right and/or best, I'd say if your giving has these elements, it's right and best.

Regular, intentional, proportional, voluntary and joyful.
permabull
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AG
Next year single filers will be able to take the standard deduction and also donate $1000 cash to a qualifying charity and take the deduction above the line. $2000 for MFJ.

For larger donations you might be able to alternate paying your property tax twice in the same year (Jan 1st and Dec 31st) and move a bunch of appreciated assets into a donar advised fund (move shares in kind to avoid paying capital gains tax). Then on alternate years take the standard deduction.
BenTheGoodAg
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We give 10% to our church, but it's not even from tax year to tax year. We also save like $100-150 a month into a "blessings" savings account we use to help people with little things (buying dinner for someone in need, make a rent payment for someone, fix someone's car, etc) - this one has been the most fun. And each of us has a charity donation we make to something we care about.

Our giving has grown beyond our tithe as our financial means have grown. We have a plan to continue to grow it and be able to give more into retirement. We'd like to increase our "blessings" fund and be more creative with it in the future.

The only real tax strategy we use is deduction bunching - Basically alternating between the standard deduction and itemizing by paying property taxes every other tax year (Jan 1& Dec 31 within same calendar year) and a bigger pot of charitable giving in those same periods.

Giving does give us a lot of joy and it's a very faith-driven act. I don't buy into the idea that we give to receive a blessing. That said, we feel like God has been very faithful to us and we're blessed beyond what we could have hoped for, both financially and beyond.
Ag CPA
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AG
Starting next year there will be a 0.5% of AGI floor for charitable deductions (currently there is none) but there will also be a deduction available to non-itemizers for cash charitable contributions, something to keep in mind if you are doing some tax planning around this.

https://www.journalofaccountancy.com/newsletters/pfp-digest/how-obbba-alters-charitable-deduction-strategies-for-2025-and-2026/

agcot12
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Same here. The Fidelity Charitable Giving account has proven to be a great asset to us over the last several years. We bunch property taxes with appreciated stock that is moved to our giving account every other year to maximize the deductions (will get even more savings with the SALT limits quadrupling for 2025). Then a couple clicks of the mouse and you can send $ directly to your charities without keeping up with any paperwork throughout the year.

One thing to note if you decide to go this route - we named our Charitable Giving account a non-descriptive (meaningless) name so we could give anonymously when we choose. I really like this method of giving anonymously, especially when giving to local small organizations so folks can't pin the donation back on you (for obvious reasons) and since you don't need any deduction paperwork in return it works out perfect.
mosdefn14
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Most DAFs have a button to check to give anonymously, give in your person name, or give in the name of your fund.
Talon2DSO
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Why do you give?

We give because we believe our resources are not ours, but God's, and we are merely conduits for sharing that with others.


How much do you give and why? (more, less or exactly 10%, and is that net of taxes)

We give anywhere between 12 and 15%. We give to our church, missions, a few nonprofits, and we choose someone to receive a set amount anonymously.

What are the best strategies for giving? (stacking contributions, donor advised funds of appreciated assets, etc.)

We dont have a strategy really. We give to faith organizations and individuals.

What causes/organizations do you give to?

BiG Heroes Inc in Brownsville is a big one for us. They train adults with special needs and help them find employment in the community. My sister in law has prader-willy and seeing what these kinds of programs do for her is very special. Giving to BiG Heroes allows me to stay connected to Brownsville, TX.

We also give here in Pittsburgh to our church and to Kent Chevalier. Kent is a good friend and currently the chaplain to the Steelers. He and his wife's ministry there has done great things for the players, coaches and staff.

We also give to Project Healing Waters, SERT Ministries, and a handful of others.

What are some excuses you have to overcome when giving? (taking away from your retirement goals, lack of charity by others, poor stewardship of money, procrastination, etc.)

None. We have to talk ourselves out of giving or we wouldn't be prepared for retirement. Thankfully, we are both strong earners and have a decent portfolio built up. In a couple of years, we will buy our first commercial properties and invest in small businesses around us.
YouBet
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Our two main charitable causes are an ALS organization that helped one of my best friends (who passed in 2022) with resources and they are one of the groups researching therapies and a cure.

Our other main cause is Alzheimer's / dementia which took my grandmother and more recently my FIL.

Outside of that I'll throw money at the natural disaster of the moment (ex: North Carolina) via Samaritans Purse or one of the specialized rescue groups. Never Red Cross - they can pound sand.
aggiefan2002
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We typically give 15-20% of our gross income annually. This has steadily increased as our income has increased and expenses have mostly stayed the same. We absolutely finding creative ways to help people who might not have an obvious need.

Being generous is such a great way to remember what really matters most in the world. Making a lot of money is a weird mix of luck and hard work, and I am well aware that had a few things out of my control gone differently my life could be very, very different than it is today. We involve our kids as much as we can and even let them choose charities every year to give a significant (four figure) gift to so that they feel ownership and understand why this matters to our family. As my kids get older, I sometimes tell them the dollar amount we give in a year so that they understand what a priority this is for us. I hope generosity (more than dad being good at making money) is our family story.
Anon1234
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How much do you give and why? (more, less or exactly 10%, and is that net of taxes) 15% of my wife's gross income to church and a bit more to other various causes
  • What causes/organizations do you give to? Church, local charities, friends in need
  • What are some excuses you have to overcome when giving? (taking away from your retirement goals, lack of charity by others, poor stewardship of money, procrastination, etc.) Questioning if should allocate more to non-church related causes
  • htxag09
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    AG
    We have a set goal for donations (less than 10% of our income). We donate here and there throughout the year, family fundraisers, etc.

    Then we take the balance and give to Triumph Over Kid Cancer at the end of the year. Kid from my hs had osteosarcoma and started this charity.
    KALALL
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    AG
    We try to give sacrificially to our church and mission organizations. It's probably 15-20% of gross income on the year.

    When we see a need we try to meet it. That means buying lots of groceries and helping with bills. I struggle more with this giving, because a lot of the time the people we help are in a constant state of crisis and I feel like our giving is just pushing off the inevitable for another month.
    bigtruckguy3500
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    I give because I think it's the right thing to do to help others. My dad said God doesn't give to everyone, he gives to some and has them help others. And I'm fortunate enough that I'm doing pretty good.

    I don't give as much as I probably should. I don't exactly keep track, but it's not enough to itemize. Trying to save up to buy a house. So hopefully I'll be able to boost donations later.

    I don't really have any fixed organizations I donate too. It's always changing. I just verify on charity navigator. I do tend to give to Doctors without Borders and have started giving to World Central Kitchen more frequently. I usually keep an eye out for matching campaigns and will make several small donations a year. Also give to faith based organizations that help the needy that get a good percentage to the cause.

    I think I sometimes just forget to give, and then suddenly realize it has been a few months since I've given, and I'll go looking. And like I mentioned above, saving for a house, so not giving as much as I probably should at the moment.

    But this thread has motivated me to give some more before the end of the year.
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