Charitable Giving: The Gentle Art of Saying No
Achieving financial wellness and stability offers more than a ticket to material luxuries. It also presents an opportunity – some would say a responsibility – to give back. Finding a meaningful cause is easy; in fact, many individuals are inundated with requests to support charities, education, the arts, medical research and even their own family members. The hard part is deciding how much to give, as well as when and to whom, while respectfully declining other requests.
According to Frost, the key to making a real difference is developing a focused, long-term charitable giving plan. Here are a few tips to consider as you do:
- Start with a blank canvas: Begin by thinking carefully about what causes matter most to you and your family. What changes would you like to see in the world, and where would your contributions make the biggest impact?
- Determine what’s feasible: Work with your advisory team to run the numbers, balancing your generosity with your own lifestyle needs and wants. Don’t forget to account for unforeseeable circumstances, such as future health concerns, and how much you may want to pass down to your heirs.
- Set clear and achievable goals: With a well-defined philanthropic vision integrated into your overall financial plan, you can map out a systematic approach to making donations over time. It’s also important to build flexibility into this plan in order to avoid overcommitting if your circumstances change.
- Consider alternatives to giving cash: Writing a check can be the simplest way to donate, but there may be smarter methods that produce better results. By donating stocks or real estate, for example, you may avoid capital gains taxes, leaving more money for the beneficiary. Similarly, if you’re over age 70 ½, making charitable qualified distributions from an IRA may help you avoid income taxes on the proceeds.
- Get comfortable with saying no: Turning down requests for money may not be easy, especially if it comes from a worthy organization or a family member in need. But the reality is, you can’t say yes to everything, and structured giving plans help set those boundaries. For example, it gives you the ability to truthfully say, “I’m sorry, but my money is already allocated to these other causes.”
Looking to make the most of your financial gifts? Contact Joel at Joel.Doolen@frostbank.com or 214.515.4982.
For more information, please contact Joel at 214.515.4982 or joel.doolen@frostbank.com.
Investment and insurance products are not FDIC insured, are not bank guaranteed, and may lose value. Brokerage services offered through Frost Brokerage Services, Inc., Member FINRA/SIPC, and investment advisory services offered through Frost Investment Services, LLC, a registered investment adviser. Both companies are subsidiaries of Frost Bank. Additionally, insurance products are offered through Frost Insurance. Deposit and loan products are offered through Frost Bank, Member FDIC.
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Joel Doolen, Senior Vice President, Frost Bank