What makes you the happiest? What do you want to be remembered for? These are all important questions we all must ask ourselves at some point in our lives.
Warren Buffet can buy as many homes, cars and possessions as he wants but instead, he chooses to invest most of his fortune into others. In his Philanthropic Pledge he stated “Too often, a vast collection of possessions ends up possessing its owner. The asset I most value, aside from health, is interesting, diverse, and long-standing friends.”(1)
How can investing in others look for you?
YOU WILL BE HAPPIER
According to Psychology Today, anytime we step outside of ourselves long enough to help someone else, our happiness neuro-chemicals are boosted. (2)
In studies performed by the University of British Columbia and Harvard Business School, people who spent as little as $5 on someone else over the course of a day were happier at the end of that day compared with people who were asked to spend $5 on themselves. (3)
STRENGTHEN YOUR COMMUNITY
When our neighbors are in need, community and church organizations tend to respond faster and more appropriately to the needs of local needs than larger organizations do. These groups obtain most of their funding from private donations like yours.
INCLUDE YOUR CHILDREN
Just as giving transforms our own lives, it also changes the lives of our children. When your kids see you donating money, they are much more likely to adopt a giving mindset as they grow up. Talk about the organizations that you support and why you feel compelled to give to them. Find ways to include them in your passions throughout the year or with special occasions like birthdays and Christmas.
Share your philanthropic passions with your friends and family. Ask them to join forces with you supporting organizations that make a difference. Investing together both financially and with your time will create opportunities to deepen your relationships.
REDUCE YOUR TAX BURDEN
If you give to an IRS-approved charity, you can write off donations on your tax return. If you are short on cash, you can donate items to a charity and claim the value of these goods as deductions. Be aware that some restrictions may apply.
There are multiple avenues of supporting non-profit organizations and charities. At Kuderer Financial we pair your passions with the best financial vehicle for your financial situation.
Setup a consultative meeting to design a strategic philanthropic plan for your passions.