Photos Courtesy of JNBA Financial Advisors
The close of each year brings an invitation to engage with causes you care about: it’s giving season! Over the coming weeks, nonprofits amp up their end-of-year requests while individuals and families consider any additional donations to organizations and charities, both near and far. And you might be surprised to hear you don’t have to write a huge check to make a difference.
“It doesn’t take extreme wealth to have an impact,” said Nick Scheibel, a Certified Financial Planner™ (CFP®) at JNBA Financial Advisors, who regularly helps clients strategize and execute charitable donations. “But it’s important that your donations are purposeful and align with your personal values. The return on investment is a sense of fulfillment, knowing you’re supporting something that you care about.”
Financial donations can come in many forms, from qualified charitable distributions to appreciated stock. Another option is gifting through your estate.
“Granting money to a charity or nonprofit in one’s estate can be a very impactful way to leave a legacy,” said JNBA Advisor and Advisory Services Manager, Elise Huston, CFP® “We’ve seen clients find great peace of mind knowing that their assets will benefit a cause near and dear to their heart.”
While working with your financial advisor and your estate attorney can help you navigate the nuances to some of these charitable contribution pathways, there’s at least one asset that only requires you: your time.
“Volunteering at local nonprofits, school, or community events can have a meaningful impact on your everyday life fostering personal connections and building community,” said Huston. “We’ve seen many people embrace the social aspect of uniting with others who have a shared passion or interest.”
As charitable donations can take many forms, it’s worth defining what and how you’re capable of contributing. Scheibel suggests setting an annual giving budget and establishing a plan at the beginning of the year so you know how much you can allocate to causes that come up over time. JNBA also offers a Charitable Gift Planning Checklist as a tool to help determine what kind of donations, and to which causes, would be most meaningful to you.
“We suggest having regular conversations with the professionals that support your financial life planning,” said Scheibel. “Over time, your priorities and preferences can change, and these people need to stay informed about your interests and intentions,” he said.
Want to learn more? In JNBA’s new podcast series, Navigating Life Transitions, financial advisors and experienced professionals come together to discuss navigating life’s biggest challenges and changes, opportunities, and decisions. In the November 2023 episode, the panel addresses charitable giving in depth, with more details on ways to give from assets instead of income in addition to other thoughtful considerations.
About JNBA
With offices in Minneapolis, Duluth, and Bonita Springs, Fla., JNBA Financial Advisors is an independent fee-only wealth management firm driven to help guide people through life’s most important decisions through an advice driven by advocacy® approach. Please see important disclosure information at jnba.com/disclosure.
