Did you know that households with more than $25 Million of net worth regularly donate to charitable organizations for which they have a passion?
In fact, almost 40 percent of these households donate more than $10,000 annually to charitable causes and 14 percent donate more than $100,000 annually. Two percent donate more than $1 million annually.
Who benefits from these donations? A quarter of the donations go to religious organizations and 22 percent go to colleges or schools. Disaster relief and environmental causes each receive about 5 percent of the donations and social service organizations receive about 13 percent. Hospitals benefit from about 11 percent of charitable donations and the arts receive about 8 percent.
Three quarters of the wealthy indicate they donate to those causes that they are passionate about.
While most of us cannot donate thousands of dollars to charitable causes each year, it is important to incorporate some of the same philosophies into your own charitable giving.
-Give to organizations or causes that you feel passionately about. Or if you cannot donate money….volunteer some time. You would be surprised at how many young wealthy households donate time as well as money.
-If you want to make sure that your money goes to something you really care about…give to organizations that you feel are really ensuring that the money goes where it is needed. Sometimes that is why you see individuals donating to religious organizations…they trust that the dollars are being used appropriately. Check out organizations carefully to make sure how much goes to the cause rather than to “overhead”.
-Did you love your grade school, college or high school? That’s another way to feel like your donations are being used in a manner that you feel comfortable with.
If you need someone to talk to about how to get the greatest benefit from your charitable contributions….especially tax-wise…check out our Best Advisors.