Generosity – For it is better to give than to receive

At Bare Wealth Advisors, one of our core values is Generosity.

We believe that cheerful and generous giving inspires others in their purpose, enriches relationships, and expands the influence of the resources we manage.  All year long we love to lead our clients in conversations regarding generosity and strategic giving.  But certainly, something happens between Thanksgiving and year end that ramps up those conversations.  There is a clear connection between gratitude and generosity.  A connection between heart and function.   So here are some thoughts below about how you give in heart and in function.

How in our hearts:

• As Jesus is sending out His disciples part of His instructions were “Freely you have received, freely give.” (Matthew 10:8b) As we recognize God as the owner and we as the stewards it positions our hearts in gratitude to give freely with no strings attached.
• “God loves a cheerful giver” (2 Cor 9:7) This is a great chapter packed with why we should sow generously and give what is decided in our hearts.
• “Each person is to give what has been decided in their heart to give.” (2 Cor 9:7) Giving is to be strategic, prayerfully considered, and is different for each person/family/business.
• By Faith. “Out of the most severe trial, their overflowing joy and their extreme poverty welled up in rich generosity. For I testify that they gave as much as they were able, and even beyond their ability.” (2 Cor 8:2-3)

How in our function:

• Donor-Advised Funds (DAFs). These are great tools that make giving easier in so many ways. A DAF is basically a savings account for giving that provides the tax deduction the year you place money in the DAF.  It can be directed out immediately to charities of your choice or wait until you decide to give it later.  It simplifies giving record-keeping to one place, provides ability to give anonymously, can be used to maximize bunching strategies with the current itemized/standard deduction tax law, and so much more.
• Giving 100% of Adjusted Gross Income (AGI). For 2020 only! You can deduct up to 100% of your AGI using charitable gifts of cash. These donations must go to an operating nonprofit. You can not use a DAF for the increased amount.  (Though a single charity fund is an option)
• Out of Assets not only Income. We often only think of giving based on income and out of cash.  However, there are lots of ways to give the same amounts but in a more tax advantaged way.  Several examples would be: charitable SWAP donating appreciated stock and using cash then to buy back the stock to improve basis, gifting portions of business ownership, giving of grain or other commodities, Real estate, and more.
• Qualified Charitable Distributions (QCDs) – IRA accounts have no required minimum distribution (RMD) in 2020. But those age 70½ or older can still make gifts directly from an IRA to a nonprofit up to $100,000. This gift donates pre-tax dollars. The earned income is not once taxed because it goes directly to the charitable organization.

 Please reach out to us with questions as you consider your generosity goals!  We would encourage you as Ron Blue says,  to consider “doing your givin’ while you’re livin’, so you’re knowing where it’s goin’.”  For it is better to give than to receive.

(We have recently completed a new video sharing more about our roots of generosity – please check it out! (www.barewealthadvisors.com/about/values/givingroots/)

Securities America and its representatives do not provide tax advice; therefore it is important to coordinate with your tax advisor regarding your specific situation.