Over the years, what you perceive as “wealthy” has likely changed. You’ve also probably made assumptions about what it takes to be a “philanthropist.” The conundrum lies between the perception of personal wealth and charitable giving capacity. Find resolution where you can pursue charitable objectives while remaining secure in the knowledge that your financial plan is on track.

Whether you choose to give to charity or not depends on a lot of factors. Here are a few themes to remember if you skew toward the more frugal end of spending practices, especially during national Make-A-Will month when estate planning may be top of mind.

Stay within budget. The fear of running out of money may be preventing you from investing more meaningfully in the causes you care about. Even if you’re a savings-minded individual, you can see your charitable intentions become reality! Once you’re comfortable that your assets, income sources, expenses, and long-term projections are in good shape, you will find the space in your budget to make charitable donations. When you look at the big picture, even if you are historically cautious, you may see that you truly have more flexibility than you realize.

Every gift counts. If you watch every penny, you may be concerned that giving modestly doesn’t really rise to the level of a “philanthropist” making a difference. But every gift - small gifts, large gifts, and everything in between is vital to the success of charities. Getting started with charitable giving at a level that makes the most sense for you is what counts. Some donors find the best way to give is with funds they won’t need during their lifetime, or making what’s called a planned gift, by arranging for a bequest to a charity in their will or beneficiary designation of life insurance or retirement plan assets.

Bang for the buck. Gifts of highly appreciated stock to a charity avoid capital gains taxes, so more money goes to support your favorite charities than if you sell the stock, pay the tax, and then give the proceeds to charity. Ask a trusted advisor to help you identify meaningful giving opportunities based on your budget, assets, and areas of interest.

See results. By activating philanthropy plans during your lifetime, you can experience the joy of giving and witness tangible returns on your investments. The Waco Foundation team can arrange for you to meet with nonprofit leaders and hear first-hand the impact your money can have on improving the quality of life in our community. This real-time feedback also allows you to adjust giving strategies to align with your evolving intentions more closely.

Philanthropy is meant to be fun and rewarding for everyone involved. We are here to help make that happen!