Are You a Philanthropist?

 America is a very generous nation. In fact, we are the most generous nation on the planet.[1] I am not just talking about the Bill Gates of the world. Average people give generously to their churches and other organizations that have educated or helped them or their families in the past. Or, they give to a good neighbor organization that has a solid reputation within the community. In fact, over 96% of people 65 or older are already giving to charity.[2] The vast majority of these gifts are in the form of checks or cash. But, did you know that there are other kinds of gifts that you can make that will have a significant impact and might help you at the same time?

 
Many people I encounter don’t have a good understanding about all of their financial assets and how they can use them. Seniors commonly have investments that they have not even tapped for retirement and may not need. Many have life insurance that they don’t pay on anymore. One idea to consider is to name your favorite charity as the new beneficiary of one of your life insurance policies. This will provide a significant gift, leave a legacy and potentially provide a tax deduction for your estate. 
 

Congress just extended the rule through 2009 enabling seniors over 70 to give up to $100,000 directly to charity from their IRA accounts and avoid paying future income taxes on these donated assets. In addition to stocks and bonds, land, farms and other real estate can also be suitable charitable gifts. You may also be able to convert a personal asset into a charitable annuity that will provide guaranteed income for your lifetime. Gift planning is a great way to become a philanthropist by integrating your charitable goals with your overall financial goals.

“The future is already here - it is just unevenly distributed”

William Ford Gibson

[1] World Bank WDI 2005
[2] Freelanthropy.com 2006 Charitable Giving Index