Fall and Philanthropy: Tips for charitable wealth planning
Sep 30, 2024
What comes to mind when you think of autumn? You might immediately picture colorful fall foliage, fuzzy blankets, or your favorite seasonal beverage. But what about philanthropy?
Many people associate charitable giving with the end of the year, and for good reason. December is when many feel most generous, they receive more solicitations from nonprofits, and they’re looking to make the December 31st tax deadline. However, if you don’t have a plan in place, December may not turn out to be as charitably successful as you’d like.
This makes fall the ideal season for charitable wealth planning. As you get cozy with an apple cider and gather with family, here are some ways you can step back, remember the importance of philanthropy, and craft an impactful charitable giving plan.
Consider your full tax plan
If you have yet to consider your full tax plan for this year and how your charitable wealth planning fits into it, then now’s truly the time to take action. In autumn, time is still on your side to thoughtfully consider your entire tax plan to craft a holistic strategy.
What’s more, if you haven’t focused on your charitable wealth planning before, you may not be familiar with the time parameters surrounding taxes. If you’re itemizing your tax deductions and want to give enough to make your charitable tax deduction impactful, it must be done before the new year. In Autumn, you have time to both build your tax plan and act on all the activities you want to claim before the December 31st deadline.
Itemizing deductions, however, may not be the right choice for everyone. It’s important that you review your full tax plan to determine if a standard deduction instead of itemized deductions is right for you. If you choose to take the standard deduction, consider adjusting your charitable giving to take the universal charitable deduction.
With a plan set in the fall, you can enact your plan without feeling too much of the end-of-year crunch. After all, when you’re busy preparing for gathering with family or gearing up for the new year, you don’t want to be worried about whether you got all your financial tasks in order by December 31st.
If you’re not sure where to get started with your fall charitable wealth planning, download this planning guide to get started.
Review charitable causes you care about
In autumn, many people slow down from the busy excitement of summer, reconnect with loved ones, and take stock of what really matters. If this is the case for you, then this is also the perfect time to ask yourself, “What’s my why?” when it comes to your charitable giving.
How do you want to make an impact with your charitable giving? What charitable causes are you interested in? What charitable causes have you already given to? What charitable causes do you care about that haven’t yet received your support? As you craft your plan in the fall, there’s still time to support your favorite organizations before the new year.
You can also take time to consider new opportunities and causes to support. Perhaps as you gather with family or friends, they’ll introduce you to a new challenge that you’d like to help solve with your financial support. As you consider your full philanthropic plan, you can discover charities you want to give to this year or even beyond.
Autumn may also be your calm before the whirlwind that is the holiday season. If you’re sitting down to plan gifts for people before the new year but coming up short on what to give someone, giving to a charity in their honor could be the ideal present. If you grant with Vanguard Charitable, we make it easy to recommend a grant in honor of someone else.
Look back on the events of the past year
Perhaps you had a giving plan at the beginning of the year. However, throughout the year, unexpected events can occur that may influence how you approach your giving.
If a primary goal of your charitable planning is to make the greatest impact and provide support where it’s needed most, then reviewing the events of the past year in the fall can ensure you are a responsive giver that makes informed decisions about your philanthropy.
For example, natural disasters cause billions of dollars in damage and leave those affected in need of support long after the media has moved on to another headline. In addition to natural disasters, other events in the year such as disruptions in the market, elections, humanitarian crises, and other major incidents can create competitions for funds. Keeping an eye on the bigger picture when planning means that your charitable giving goes where and when it is needed most.
As we approach the end of the year, you may discover that you can make a larger impact by adjusting the plan you’d originally set earlier in the year. As our latest report, Why Giving Matters: Responsive giving at donor-advised funds spurs greater total giving, shows, a Vanguard Charitable donor-advised fund (DAF) enables you to give responsively without disrupting your typical giving.
Conclusion: Now’s the time for charitable planning
While you don’t need the perfect charitable wealth plan on January 1st, don’t wait until the last month of the year to craft your year’s charitable giving strategy. Now that’s it fall, make the most of gathering with your loved ones. Sip on your favorite autumnal drink and get to work on a holistic giving plan to carry you through the rest of the year and possibly beyond.
Are you ready to meet your philanthropic goals with Vanguard Charitable? Get started today!
