Responsible, Charitable Giving

Charitable giving is a wonderful thing to do. Not only will it make you feel good about yourself and your contribution to the community, but it’s also tax deductible in most cases. Some people even enjoy giving so much that they do it regularly, often via monthly deductions from their accounts.

While financial planners are typically in favor of some charitable giving, they do sometimes frown

upon giving too much. As such, if you’re a big-hearted person, listen to your financial advisor if he or she says you’re giving away too much. When a financial advisor says that, it’s usually an indicator that you’re lacking in other areas, such as personal savings or retirement funds, and that you can’t afford to give as much as you are. Remember, giving is good, but you also have to look out for yourself, especially if you want to be able to keep on giving.

You should also listen to your advisor’s counsel about which charities to give to. Unfortunately, not all charities are legitimate, and the IRS realizes this. That’s why it only recognizes certain charitable contributions and certain charities. Giving is great, but you still deserve to get something in return, so make sure you are giving to real charities and that you can actually deduct what you’re giving.

Your financial advisor is a great source of information when it comes to responsible giving. Remember, your advisor isn’t ever trying to stop you from doing something good; he or she just wants you to do good the right way. When you do that, everybody wins!

Monday, December 28, 2015