- 02 Oct
The Benefits of Philanthropic Planning
Why do you give?
As you begin to consider philanthropic planning, this is an important question to ask – and be asked.
What are your ultimate goals? What people, places, causes, or organizations are important to you? What kind of world do you want to live in – and how can your philanthropic efforts help effect this positive change?
Many different people will have many different responses to these crucial questions. That’s certainly to be expected. Just as everyone leads a one-of-a-kind life, people will have different aims, intentions, and goals when they give back.
Build. Live. Share.
At FourStar Wealth Advisors, our mission is to address the full life cycle of a citizen, to assist them in living a full and complete life, using our unique “Build. Live. Share.” approach. In short, we aim to assist at all phase of life: To help our clients BUILD a strong life by best efforts and practices at managing resources, to LIVE and enjoy those resources, and to SHARE those resources as desired.
People are generous, and want to share what they have with friends and family, while also donating it to others. Oftentimes, many individuals can, and want to, do some sharing during the build and live phases. Even more commonly, sharing comes into play as folks near their golden years. The old saying applies: “You can’t take it with you!”
The reality of life is that at some point we will share all our resources, money, assets, and other possessions, whether with family, the government, or philanthropic causes.
In particular, philanthropic giving is becoming more and more of an important topic among citizens, and their financial professionals. This becomes abundantly clear as you consider the following statistics:
- Charitable giving has increased more than sixfold since the 1950s
- Between 2016 and 2017, online giving grew by 9.2%
- Donor-advised funds have grown by almost 20%, year over year, and held $70.7 billion in client assets as of last year
- A 2010 survey from The Center of Philanthropy at Indiana University found that accountants (67.5%), attorneys (40.8%) and financial wealth advisers (38.3%) were considered to be among the leading sources of charitable advice, followed by non-profits
- Younger generations are starting with philanthropic giving as they accumulate wealth. Research suggests that Millennials and GenX are “looking to make a positive impact on the world.” Millennials are more likely to give to causes that fight diseases and support kids’ programs and education.
- In a 2014 survey, 91% of respondents said they had donated time or money to a charity in the last year, and 55% had given both
The “Whys” of Wealth Sharing
At any stage of the journey, giving can be one of the most enriching parts of a life well lived. There are so many different things you can do and accomplish with your philanthropic dollars and donations to create positive change in the world, for the benefit of the people, places, and organizations that matter to you. Truly, this can be one of the most fulfilling use of your assets.
In all, philanthropic efforts may allow you to:
- Build and contribute to your community
- Improve quality of life for yourself and those you care about
- Help transition from one phase of life to another
For instance, moving from active operations for your business and into the non-profit sphere
- Unify your friends and family
Philanthropy and charitable giving can be a way to bring different generations together, uniting your family or friends around a common cause, while teaching younger members about important life lessons. According to a survey, 62% of investors reported that philanthropy was an important way to educate the next generation on family values and legacy.
- Leave a lasting legacy
- Receive certain tax benefits and increase spendable income
Getting Started with Philanthropic Planning
According to a report, though more than 90% of survey respondents reported giving to charity, only 20% said that they felt their giving was extremely effective or very effective. Meanwhile, less than half (40%) said they felt satisfied with the impact of their giving on their community.
Working with a financial advisor may be one way to help maximize the impact of your giving.
FourStar Wealth Advisors can assist in advising you in your philanthropic endeavors to charities and non-profits, in addition to helping manage your distribution of gift assets to family to facilitate early transfer of family wealth.
Once we understand your “why,” we can focus on “how” to help you share in the right ways, considering tax issues, family issues, and charitable intent. As a donor, FourStar can be your advocate, understanding the full financial picture and assisting on your side of the table.
In addition to a full and comprehensive understanding of the financial landscape, FourStar also focuses on transparency. There are many conflicts and issues that donors and investors need to consider; it’s important to understand who is benefiting from a donation, and taking steps to ensure that there are no conflicts.
About FourStar Wealth Advisors
Four Star Wealth Advisors is a Registered Investment Advisor firm headquartered in Chicago. An independent firm without the conflicts of the old school firms, we are directly focused on serving clients in a conflict-free environment.
We believe success in achieving important financial goals starts with a comprehensive wealth strategy. We will help you define what is most important to you and then formulate the strategies that are suited for your needs, whether you are accumulating wealth or investing for income, solidifying your retirement plan or devising a distribution approach that meets your lifestyle and legacy goals.
Have any questions? Looking to get in touch? Don’t hesitate to contact us today.
General Advertising Disclaimer
This article is provided by FourStar Wealth Advisors, LLC (“FourStar” or the “Firm”) for general informational purposes only. This information is not considered to be an offer to buy or sell any securities or other investments. Investing involves the risk of loss and investors should be prepared to bear potential losses. Investments should only be made after thorough review with your investment advisor, considering all factors including personal goals, needs and risk tolerance. FourStar is a SEC registered investment adviser that maintains a principal place of business in the State of Illinois. The Firm may only transact business in those states in which it is notice filed or qualifies for a corresponding exemption from such requirements. For information about FourStar’s registration status and business operations, please consult the Firm’s Form ADV disclosure documents, the most recent versions of which are available on the SEC’s Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov/
About the Author
Leave a Comments