The holiday season is upon us! If you are like me, you highly anticipate this time of year but it always seems to fly by. There never seems to be enough time to fit everything you want to do into your busy schedule.
Something that is very important to our family and a lot of our clients is charitable giving. There are many articles about “year-end giving” and why you should participate. While most of us would probably agree that we should give back in some type of capacity (money, time, etc.), we can sometimes give in an isolated manner.
I would challenge you to consider involving your family in this charitable giving conversation over the holidays. For some, this conversation is very natural and comfortable, while for others, it can be challenging. We have detailed 15 questions below to help facilitate a philanthropic conversation with your family this holiday season.
The 15 Questions To Ask This Holiday Season
- Why is philanthropy important to our family? What’s our motivation for giving?
- How involved do we want to be with our giving? Should we volunteer, serve on a board, go on site visits, attend conferences, collaborate with other donors or just send in donations?
- Which causes and charities are most important to each of us and why?
- Should we donate as a group, or is it OK to give separately?
- Do we want our giving to be concentrated in the near future, throughout our lifetimes or for generations to come?
- Who wants to be involved, now and later? Who will be in charge of family giving in the future?
- Should we plan and manage our giving ourselves, or would it be helpful to consult with charitable giving experts to help?
- Are there particular assets we own that nobody will want in the future that can be donated directly to a charity or to a Donor Advised Fund (DAF) account?
- How should we decide how much to give? Who will coordinate with our financial advisor and CPA so we get the maximum income tax benefits?
- Which past donations have provided us with the greatest satisfaction or regret?
- Are there any charitable beneficiaries named in the estate plan? Should we include some? Is a charitable legacy important to us?
- Should we consider donating the required minimum distributions (RMDs) from our individual retirement accounts to charity rather than pay outright and incur federal income taxes?
- Are we fully aware of the advantages of donating appreciated assets, i.e. stocks, land, mutual funds, etc. other than cash?
- Does anyone in the family have concerns or problems with our charitable giving?
- What are the benefits and impact of our family giving?
Take Away
Conversations of this nature might not fit into your family dynamics – that is okay. Our family has not had group discussions of this nature in the past. Nevertheless, my parents were always generous and demonstrated a giving heart. There are obviously other ways to encourage your family to be charitable. Do you have any special stories about your family’s giving? We would love to hear about your experience!
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About The Author
Matt Price serves as a Partner and Senior Vice President for The Price Group of Steward Partners. He resides in Houston with his wife, Emily, their two daughters and the family golden retriever. Matt studied at the University of Pennsylvania – Wharton School of Business for his Certified Investment Management Analyst (CIMA®) designation after receiving his undergraduate degree from the University of Tennessee - Knoxville. Over the past 9 years, Matt has helped families make high quality, common sense decisions regarding their wealth and their legacy. Matt firmly believes that everyone needs a wealth coach!
Any opinions are those of Matt Price, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Donors are urged to consult their attorneys, accountants or tax advisors with respect to questions relating to the deductibility of various types of contributions to a Donor-Advised Fund for federal and state tax purposes. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.