Giving back is more than a kind gesture; it’s a powerful financial decision that reflects your values and goals. For many, the act of giving is rooted in a desire to make a difference—both for loved ones and the broader world. How do you balance this generosity with your personal financial security and future goals?
As a CERTIFIED FINANCIAL PLANNER®, I help individuals and families navigate this question by bringing clarity, confidence, and direction to their financial lives through the Real Wealth framework.
What is Real Wealth?
Real Wealth is about more than numbers; it’s the alignment of your:
💓 Mission: Your goals, values, and purpose.
🧠 Mind: Your beliefs, habits, and mindset about money.
💰 Money: Your financial resources and how they’re used.
When these three elements align, you can create a life of meaning and impact, guided by thoughtful decisions and purposeful actions. Charitable giving is a perfect example of how Real Wealth can come to life.
Do You Know Your “Enough”?
Before diving into charitable planning, it’s important to define what “enough” means for you. For some, “enough” means the peace of a paid-off home, the joy of taking three meaningful trips each year, and the deep satisfaction of knowing you’ll leave a legacy that supports your children, nieces, nephews, and generations to come. Knowing your “enough” empowers you to:
✨ Care for yourself and ensure financial security.
✨ Leave a meaningful legacy for your loved ones.
✨ Create a lasting impact on the world.
This clarity helps you give from a place of abundance rather than scarcity, ensuring your contributions are both impactful and sustainable.
A Framework for Charitable Giving
When it comes to giving, I recommend approaching it through this strategy framework:
WhoDecide who will benefit from your generosity. This could be individuals (e.g., loved ones), organizations (e.g., alma mater, religious organizations), or entire communities (e.g, libraries, parks, playgrounds). | WhatConsider the types of gifts you can give such as:
| WhereIdentify the sources of funding for your giving such as:
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WhenThink about the timing of your giving:
| HowExplore the best vehicles for your giving such as:
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To create a meaningful Charitable Giving plan, apply the Real Wealth Framework™ to align your financial actions with your values and mindset:
💓 Mission: Reflect on your values and purpose. What causes resonate with you most deeply?
🧠 Mind: Approach giving with a mindset of abundance, ensuring your generosity aligns with your financial security.
💰 Money: Use financial tools to amplify your impact while integrating giving into your overall financial plan.
Charitable Giving and Your Financial Plan
Charitable giving doesn’t exist in a vacuum—it touches many areas of financial planning, such as cash flow, taxes, investments, retirement, insurance and estate planning. For example:
Cash Flow Management: Ensure you have enough for living and giving.
Tax Optimization: Maximize tax benefits through thoughtful planning.
Investment, Retirement, & Insurance: Leverage these financial assets to fund your gifts.
Estate Planning: Use your legacy to create a lasting impact.
For example, you may contribute as an automatic deduction from your bank account, fund a DAF to receive the tax benefit in one year and gift in subsequent years, indicate a bequeath in your trust, or add an institution on your life insurance policy.
Charitable planning is more than a financial act—it’s an opportunity to align your mission, mind, and money to live a life of purpose, care, and legacy. Whether you’re giving back to your community, supporting loved ones, or championing a cause close to your heart, your generosity can be a powerful reflection of your Real Wealth.
Are you ready to explore how charitable giving fits into your financial journey? Let’s start the conversation.