Looking for accounting services? Go to www.kfg.tax
Financial Advisors Can Help the Way You Give
When a person wants to commit part of their earnings or assets to charity, they might initially think that it is straightforward and simple, but this is often not the case.
​
The role of financial advisors is to guide the person and help them pursue specific monetary goals. If one of their objectives is to donate to charity, the advisor can suggest different ideas to make donations efficiently.
Efficient Charitable Contributions
Contributions to charities can be done in a tax-efficient way to benefit the charity and the individual. When choosing a charity, it can be important to choose a 501c3 organization so the contribution can be partially or fully deductible.
​
Taxpayers in 2022 must itemize their deductions on Schedule A to be able to receive a tax deduction. The deductible amount can vary depending on if the contribution is a cash contribution or a non-cash donation. There is a 60% of AGI ceiling on charitable cash contributions that are made to qualified charities that could be eligible for a deduction.
Advisors Can Help People Shape Their Goals
As was mentioned before, advisors are professionals that help their clients make decisions. Subsequently, they can suggest different options to assist the client in choosing different options.
One of the best advantages of hiring a team of advisors, like The Kelley Financial Group, is that they're committed to helping people shape realistic goals in an efficient manner, particularly if they want to donate funds to charity. These professionals understand the importance of charity.
Oftentimes, financial advisors will ask the client questions to help find appropriate strategies. The following inquiries are a good example of this:
​
-
How can giving away your money change a person's life over time?
-
What are your priorities for giving money away?
-
Is there a philanthropic legacy you would like to leave behind?
The previously mentioned questions are personal, but they are necessary to arrive at the choice that is most appropriate for the situation. At the same time, answering these queries is crucial when the person wants to determine the kind of charity they want to help and why.
Financial Advisors Often Know a Lot about the Charitable Community
When someone hires a financial advisor, they should seek an experienced professional who knows about not only their field but also other topics, such as charity. Therefore, getting help from this type of advisor can often be beneficial because the client will have an experienced person by their side who likely understands the steps leading to their goals.
​
Financial advisors can offer clients different options to help achieve their charitable goals. For example, they can help examine nonprofit organizations and determine if the organization matches what they are looking for.
​
Hiring a financial advisor from The Kelley Financial Group can also broaden the client's mind because the advisor might be able to show them like-minded donors who can expand the person's perspective.
Other Estate Planning Strategies
Philanthropy Could Make Some People Happier
In some cases, donating gives wealthy individuals a sense of fulfillment that they cannot find anywhere else.
​
The financial advisor's job does not include deciding for their client or telling them what to do, but it can include suggestions. On occasions, these alternatives align with the client's values and goals, so they might feel like they are a part of something bigger than themselves.
​
Once the person can locate the charity they like with the help of their advisor; the client often has a clear financial path because they know what they want to do. Thus, this might make them feel happier, more content with their choices, and fulfilled in different aspects of their lives.
Advisors Help Clients Incorporate Philanthropy Through Large Financial Planning
One of the most crucial challenges for to-be philanthropists is to incorporate donations into large-scale financial planning. In other words, sometimes, even though the person can locate the charity they want to support, they're unable to organize their donations in coordination with other monetary goals.
Financial Experts Support Big Ideas
Regardless of the philanthropic vision the client has, the financial advisor can attempt to help them pursue their goals. Therefore, hiring one of these professionals can be a beneficial decision when the person wants to turn their big ideas into action.
Although it takes some time to find the ideal financial advisor and form a positive professional relationship with them, in the end, it is often worth it due to the experience and knowledge an advisor can provide in guiding clients to pursue their goals and shape the path they want.
Why Hiring a Financial Advisor Is Essential
As was pointed out before, financial advisors are essential professionals that can help people who want to donate some money to charity. Charitable giving can be a rewarding decision with many benefits, especially if the person wants to do something with a specific amount of money. Thus, with the assistance of a knowledgeable advisor, the client can choose the organization they want, decide what they wish to pursue in the future, and much more.
​
This material was prepared for The Kelley Financial Group’s use.
​
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.
