Bruce Helmer and Peg Webb

This time of year, when people are asked to give money to a cause or decide on how to make more of a difference with their charitable giving, they can sometimes get stuck. So, today we’d like to offer seven simple ways to get “unstuck” and amp up your giving.

No. 1 Focus on the people and causes you care most about.

As year-end approaches, focus on one or two causes or organizations that you care the most about. Concentrating your gifts, rather than stretching them across too many organizations, allows your dollars to make a more significant impact.

A helpful first step is to write a charitable mission statement. It doesn’t have to be long — two or three sentences are enough — but it should put the purpose of your giving into words. By drawing on your values, background, experience, interests, and closest relationships, and written from the heart, a thoughtful mission statement conveys your giving direction and also can be very motivating and fun. It also helps you decide when to say “no” to the onslaught of “asks” that are hitting your mailbox.

No. 2 Leverage the power of your company’s giving culture.

Many companies have well-developed and organized charitable giving programs. In many cases, companies will match some percentage of your financial gifts, which is equivalent to free money. Be sure to look at your company’s benefits page before you donate and see if your employer or resource groups will match it. You’ll be amazed at the collective impact unleashed by your coworkers’ willingness to support a cause.

Other companies may not offer matching gifts but will provide certain incentives for employees who volunteer their time. If an employee charitable-works group exists at the office, consider joining. If your company doesn’t offer a charitable giving program, propose a charity that aligns with your company culture and spearhead the organizational, communications, and giving effort to get it rolling.

No. 3 Use financial strategies to maximize the value of your donation.

Consider setting aside a monthly amount for giving so that it becomes a habit and part of your budget. Donating cash is not the only way — you can also donate appreciated stock or other appreciated assets, including:

• Public stock, bonds, and mutual fund shares

• Privately held business interests (C-corp, S-corp, LLCs and LPs, private equity, hedge funds, and so on)

• Other non-publicly traded assets (restricted stock, life insurance, retirement assets)

Donating appreciated assets through a donor-advised fund (DAF) can eliminate or reduce capital gains taxes and the Medicare surtax and allow you to take an income tax deduction of the full market value of the asset if you itemize your deductions. It is generally not recommended to donate a losing or depreciated investment, as it creates more headaches than upside for the charity. Be sure to consult your financial or tax professional before taking any of these steps.

No. 4 Commit to multi-year giving to a single charity.

If you want to commit to supporting your favorite charity over the long term, let an organization’s leadership know as early as you can. Let them know how much you intend to give over time, and how many donations you will be making over that time frame. This way, the charity will be able to plan how to put your financial support to work, making it easier for them to take on bigger projects.

No. 5 Make unrestricted gifts.

Narrowly defined, restricted or special charitable gifts lock the charity into spending that may not fully reflect its current mission or near-term objectives. By offering your gifts with no strings attached, leadership will be able to use your funds on their most mission-critical priorities, do the most good, and deliver stronger results — results that you can proudly say you helped make happen.

No. 6 Consider a DAF for increased control and timing.

A DAF is a tax-advantaged investment account specifically designed for charitable giving purposes. The key benefits of making gifts through a DAF include the following:

• Contribute as often as you want

• Get an immediate tax deduction for your contributions

• Leave money in the account for future growth potential

• Recommend grants to qualified charities at your discretion

DAFs are generally easier and cheaper to set up and administer than a private foundation but have a few important tax rules to follow. Be sure to check with an adviser before proceeding.

No. 7 Finally, be a vocal advocate for your favorite cause.

People like to give to people, not to a faceless organization. When you advocate for your favorite cause or organization, your voice can be as powerful as your wallet. To spread the word, follow the social media accounts of your charity and repost updates to your network. These simple actions will help you spread greater awareness about an issue or worthwhile cause. Finally, as worthy causes are always starved for passionate, committed volunteers, we encourage you to give generously of your time or help with fundraising, which is perhaps the two best ways to make a lasting difference.

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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. 

Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of “Your Money” on WCCO 830 AM on Sunday mornings. Email Bruce and Peg at yourmoney@wealthenhancement.com. Securities offered through LPL Financial, member FINRA/SIPC. Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor. Wealth Enhancement Group and Wealth Enhancement Advisory Services are separate entities from LPL Financial.