Exploring Philanthropic Planning and its Benefits
Philanthropic planning is one way that individuals can optimize their charitable contributions so that they have the maximum impact on the causes they believe in.
Often, individuals want to help various organizations that are aligned with their beliefs and goals. But understanding exactly how to make those contributions in a way that is the most beneficial can be difficult.
This is where philanthropic planning comes in. By using a careful strategy, an individual or organization can make the most positive impact impossible with their donations.
In this article, we’ll go over the basics of philanthropic planning and explain the benefits for individuals looking to make charitable donations.
What Is Philanthropic Planning
Philanthropic planning refers to the strategies and tools that an individual or organization can use to ensure their charitable donations both align with their beliefs but also are the most beneficial to both parties.
This can include considering the tax implications for both parties when donating. It can also refer to the way contributions are delivered, whether it be all at once or on an ongoing basis such as through endowment.
The goal is to ensure the individual donating can achieve the results they want from their donations and that the charity receives the most benefit.
Benefits Of Philanthropic Planning
The most critical benefit is that the planning represents a carefully thought-out financial strategy that maximizes the benefits of a contribution.
Similar to any kind of investing, making a lump sum investment in one asset is generally not the best path to achieve one’s long-term goals. Instead, a careful strategy that weighs the pros and cons of each investment option is used so that a more varied and well-balanced approach can be used.
Part of this strategy can be to gain the maximum tax advantage possible through various types of contributions, which in some cases can result in more money being available for donations or to fund endowments or other trusts.
Philanthropic Planning Offers More Control
With philanthropic planning, an individual can have far more control over the donations that are being made. This is especially true if the donations are to be made after one’s death.
By using tools such as trusts, foundations, and endowments, an individual can set up strategies that allow charities to be funded in a specific way for years to come.
Diversification
Philanthropic planning also allows for a greater number of charities to be helped. By diversifying a philanthropic portfolio, the generosity of an individual can go further and have more reach.
Legacy And Generational Involvement
Philanthropic planning also helps to create and preserve a legacy for an individual that future generations can be proud of.
Through ongoing donations, the legacy of the individual or organization can be maintained and also future generations can be involved in the charity, which further contributes to the overall lasting impact of the individual’s generosity.
Overall, if the goal is to truly help a charitable organization as much as possible, then a proper strategy and plan are necessary to achieve that end. With philanthropic planning, an individual or organization can create a lasting, positive impact that aligns with their values and is felt for years to come.
ICCNV is an award-winning financial advisor located in Nevada. Both the Wall Street Journal and Barron’s have recognized them as the #1 financial advisor in Nevada for 8 consecutive years.
