As donors reach retirement age, they often think over their life and what they contributed to society. Some may find their accomplishments lacking while others may wish to apply their skills in a different field; volunteer work and philanthropy are two such fields. Both forms of engagement contribute a host of benefits on health, a living a well-rounded life and even the chance to work with friends and family after retirement. This article intends to highlight several considerations when pursuing volunteer work or donating to charity.
- How much of the person’s retirement is going toward philanthropy?
- Are kids or grandchildren involved? Involving the younger generations can do wonders for imparting values and teaching them skills while also giving older generations a chance to understand and operate social media.
- How will the charity be managed?
- How many gifts will be made annually.
- What is the donor committed to? For what reasons are they giving?
Techniques to Consider
While everyone has a particular style of philanthropy, there are a handful of techniques to running a charity that can benefit both sides.
- General support, providing great flexibility of operation.
- Gift across multiple years. This can make things easier to plan and cuts down on paperwork.
- Give across the globe, utilizing U.S.-based charities operating abroad. It can do wonders to take a trip to visit the area a person’s charitable donations are benefiting.
The Role of Timing
After funding is gained and tax deductions have arrived, focus should shift toward how to use said funding and how much port mortem influence the fund will enjoy. A major concern regarding charities is what rate and approach to take in spending donations; Will grants be established or put toward a fund that outlives the donor?
Controlling The Legacy
If the donation survives the donor, would the client manage the funds? Who is in charge of such decisions? Many organizations allow their original donors to name a successor who will inherit the right of naming grant recipients. Most also allow these successors to name their own successor to keep the fund operational. Bear in mind that some foundations forbid a line of successors and some even forbid donors to decide a default charity.