The Evolution of My Charitable Giving Plan: A Journey to Inspire Action
After years of refining my charitable giving plan, I have finally reached a point where I feel satisfied with its structure and impact. However, looking back, even my initial plan was effective in supporting causes that are important to me. The key lesson I want to share from my journey is simple: Just Start Somewhere.
Timeline of My Charitable Giving Plan
Three years ago, I shared my process of creating a charitable giving strategy. Two years later, I provided an update on how I had incorporated a Donor Advised Fund into my plan. Now, I am sharing the final iteration of my family’s charitable plan, emphasizing the importance of taking action and getting started.
What I Did in 2023
In 2023, my husband and I continued our commitment to giving by donating 10% of our 2022 Adjusted Gross Income in the form of shares of a US stock fund to our Donor Advised Fund. While the administrative aspects of transferring investments between accounts posed challenges, the strategy proved to be effective once again.
“Bunching” Donations to Maximize Tax Deductions
One key strategy we are implementing moving forward is “bunching” donations to maximize tax deductions over several years. By consolidating multiple years’ worth of charitable contributions into a single year, we can increase our total deductions and optimize tax savings. This approach allows us to make the most of the deductions available to us while supporting causes we care about.
Pulling It All Together: My Entire Charitable Giving Plan
Looking ahead, our charitable plan involves a structured process that includes identifying causes and organizations we support, donating appreciated stock to our Donor Advised Fund, and distributing funds to selected charities over time. While we may tweak certain details, the overall process remains consistent, emphasizing the importance of intentional giving.
FAQ
How can I start my own charitable giving plan?
The key is to take the first step and start somewhere. Begin by identifying causes or organizations that align with your values and consider setting aside a percentage of your income for donations. It’s a continuous process that can be refined and adjusted over time.
What is “bunching” donations?
“Bunching” donations involves consolidating multiple years’ worth of charitable contributions into a single year to maximize tax deductions. This strategy can help optimize the impact of your donations while taking advantage of available tax benefits.
Conclusion
Through my journey of developing a charitable giving plan, I have learned the power of taking action and making a difference, no matter how small the initial steps may seem. By starting somewhere and continuously iterating on your plan, you can create a meaningful impact on causes that matter to you. I encourage you to embark on your own charitable giving journey and experience the fulfillment that comes from giving back.
Remember, the most important step is to take that first step and get started. Your generosity has the power to make a positive impact on the world around you.