What Will You Do for Giving Tuesday
While Black Friday and Cyber Monday may kick off the holiday buying frenzy, to me one of the best days of the season is Giving Tuesday. And apparently a lot of other people think so too. Inaugurated in 2012 and celebrated on the Tuesday after Thanksgiving, this international day of giving kicks off the charitable season, when many focus on holiday giving and volunteering in their community. It has now become a global movement, with 71 countries with 30,000 organizations participating worldwide. Add to those impressive numbers the fact that, in 2015 alone, $116.7 million was raised online for charitable causes and you can see what a successful celebration this has become.
I'm a fan because I believe charitable giving can be an important part of just about everyone's life. And it's not just about giving money; it's about having the commitment to help others—no matter your age or resources. But to turn this idea into reality, we all have to take action. Here are some Giving Tuesday ideas to help you make your own contribution this year.
Put your passions into play
With so many worthy causes out there, choosing which charities to support can be the first big challenge. So start with what's important to you. Are you passionate about education? The environment? Social justice? Has a specific organization made a difference in your life or the life of a loved one? Here's a chance to give back and make positive change.
You might also look to your own community. Whether it's a local food bank, a scholarship fund for a neighborhood school or a struggling homeless shelter, making a financial contribution that will not only benefit a cause you believe in but also have a local impact can give your donation extra meaning.
Most people can't give to every organization they'd like to support or make a big donation all at once. To narrow down your personal list of favorite charities, first think about where your donations will make the most difference, then choose the top three. You may want to do a little extra research by comparing charities at an independent online rating service such as charitynavigator.org or charitywatch.org.
Once you've made your choices, decide on a dollar amount you can afford and apportion that money accordingly. You don't have to give the same amount to each charity nor do you have to give all the money at the same time. For instance, you could consider making an ongoing donation over a specified time period rather than a one-time contribution.
Giving isn't only about money. It can also be about time and expertise. For instance, I know many retirees that regularly contribute their time to elementary school reading programs, senior centers, or neighborhood outreach services. Others with computer knowledge or accounting experience or writing skills have found groups and organizations in need of their specific know-how.
From serving meals at your church to delivering library books to the homebound, there are myriad ways to get involved either on a one-time or ongoing basis—and there are countless organizations that need volunteers to accomplish their goals.
Make it a family affair
Whether you’re giving money or time,including your children can make your dollars and your energy go even further. Consider picking a family charity and having your children contribute a bit of their allowance each week. This could be a yearlong family project with the goal of making a contribution next Giving Tuesday.
You could also get your kids involved in a project with a local nonprofit organization such as an animal shelter or food bank.
Consider a Charitable Gift Account for easy, tax-smart giving
If you want to make charitable giving an ongoing part of your financial plan, in my mind there's no better way than a Charitable Gift Account (also known as a donor-advised fund). You can open one with a tax-deductible contribution of as little as $5,000 and then use the funds to make grants to any public charity over time. (And if you donate appreciated stock, you not only get a tax deduction, you also avoid having to pay capital gains taxes.) You can then make additional tax-deductible contributions, often for as little as $100.
The documentation and recordkeeping are generally taken care of for you; you have easy online access and can even recommend grants online; and you'll have a complete history of your giving. Plus, you can invest your money in the meantime, potentially increasing your ability to give.
Join in and share the spirit
Giving Tuesday has caught on around the world through the power of social media and the generosity of people who want to bring about real change in their communities. Many corporations have joined the movement by establishing their own initiatives and gift-matching programs to encourage employees to redefine the gift-giving season. If you'd like ideas on how you or your organization can participate, check out givingtuesday.org.
Whether your own charitable giving is a once-a-year event or you have the means to share your good fortune year-round, I hope you'll make Giving Tuesday a part of your personal holiday tradition. Give as you can—and spread the word through your own social media contacts. To me, Giving Tuesday represents a generosity of spirit that can enrich us all.
Disclosures: The information in this presentation is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Schwab does not provide legal or tax advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor or CPA, Financial Planner or Investment Manager.
A donor’s ability to claim itemized deductions is subject to a variety of limitations depending on the donor’s specific tax situation.
COPYRIGHT 2016 CHARLES SCHWAB & CO., INC. MEMBER SIPC. (#1116-3710)
This was originally featured by Charles Schwab.
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