The Power of Giving: Teaching Generosity and Smart Charitable Strategies

I have a vivid memory of my grandparents handing me a few quarters for tithing whenever I visited their church as a young child. I remember thinking it was odd that they handed the quarters to me, instead of giving the quarters themselves. Nevertheless, I was always excited for the offering plate to come around so I could hear the sound of my quarters being added to the plate.

As an adult, I now understand that my grandparents wanted me to learn what it meant to give. We have seen an increasing number of clients include their children in their giving philosophy, and this is a great time of year to stop and notice all the good that is being done around us.

Our clients continue to make significant gifts to numerous charities year after year. Oftentimes it’s through donations out of their donor-advised funds (DAFs). A DAF is an investment account for charitable giving in which you receive a tax deduction for the year you donate investments or cash into the DAF, and then you can invest the money and distribute it to charities of your choice over the years to come without having to pay capital gains taxes on the earnings.

We have also seen immense generosity through qualified charitable distributions (QCDs) for those who have an individual retirement account (IRA) and are over age 70.5. A QCD allows you to avoid income taxes on your donation by processing a donation to charity straight from your IRA. This is especially beneficial after you are required to take required minimum distributions from IRAs. Finally, we continue to be inspired by the way so many clients are generous with their time.

Participating in giving is powerful, whether you are a child or an adult. We work with people who have experienced what means to “hear their quarters being added to the plate” and we are honored to work with each of you.

Hannah Whatley, CFP®, AIF® is an Advisor with Rather & Kittrell.