November 25th, 2014
Financial-Planning.com publishes Erik Strid’s article, ‘Charitable Planning…How to Involve the Whole Family’.
For most people, charity and philanthropy are largely reactive. A telephone solicitor calls asking for a contribution; a business associate requests a financial commitment to support his or her pet cause.
However, it has become more common for clients to take a more active role in their philanthropy, and to share their time and talents as well as their treasure. In these cases, it makes sense for a family to adopt what we call a family contribution system. Such a system enables a family to be proactive in its commitments, and to reap the joyful benefits of making a difference with commitments that are meaningful to them. It also gives them a platform for teaching children the value of philanthropy, and how they can make a difference in the world as well.
Family contribution systems can range from the complex and expensive structure of a private family foundation to much simpler and cheaper programs. The important ingredient is not the amount given or the complexity of the tax planning involved, but the effectiveness of the plan in impacting and involving the entire family.
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