Want to donate but not sure how? More and more people are setting up donor-advised funds as a way to give back. These are funds that donors create by depositing securities, assets, or cash, and then relaying the money to charities over time. They’ve become increasingly popular because of their immediate tax deduction, and they’re an easy way to donate non-cash assets, like stock, as money. But charitable giving provides more than just financial advantages. People are recognizing the benefits of using a foundation to achieve their personal goals while distributing their wealth in ways that benefit others. To find out more about the benefits of using donor-advised funds and how charitable giving can improve your life, read on.
All Donations Make an Impact
When you give to an effective donor-advised fund, your donation is pooled together with others. What might seem like a small contribution can actually create a really big impact. The size of your donation combined with those of others can result in large-scale donations, which can drastically improve the lives of others.
Charitable Giving Improves Your Health
Research has shown a correlation between donating and improved nervous and immune systems, along with a heightened self-image. Donating also increases your ‘happy’ hormones. So doing something good for others makes you feel great while actually contributing to better overall health and wellbeing.
Increases Your Self Worth
Charitable giving can also increase your own self-worth. When you donate to others, it makes you feel like you are contributing to something that is meaningful to you. Many have regarded donating as one of the most fulfilling and rewarding acts one can do.
Donating Sets an Example
Donating to charity can show others, especially your children, that you care about people and want to make a positive difference in the world. You can also instill a desire in your children to share and be generous to others.
It’s a Good Use of Your Inheritance
As millions of baby boomers start to retire, there will be an enormous wealth transfer passed on to their children. And the generation Xers and Millennials are no strangers to volunteering and charity giving. It’s been a steady part of their culture since elementary school, food drives, and volunteering for credit. With a sizable wealth transfer, a donor-advised fund is an excellent way to use some of the inheritance to make a real difference in the world.
There are lots of financial benefits of donating through donor-advised funds, but that’s not the only reason to do it. You can bring more meaning and value to your life, improve your wellbeing, and do some real good in the world. When you’re ready to put your money to good use, contact us at The Beacon Group at Assante Financial Management Ltd. We can help you decide which donor-advised fund is right for you!