Giving back

Philanthropy provides us with an opportunity to find purpose and meaning in our own lives — while also helping others. You don’t need tremendous wealth to be an active philanthropist, just a desire to make a difference.

What percentage of young adults give?

That’s right.

84% of millennials give to charity, donating an annual average of $481 across 3+ organizations.

More than that.

84% of millennials give to charity, donating an annual average of $481 across 3+ organizations.

Source: Nonprofits Source, 2018 (Latest available data)

Getting started

Clarify your charitable intent. Take a few minutes to download our Values Worksheet. It can be a great tool in helping you choose the best ways to act on your personal values.

Decide on the organizations you want to support. Your advisor can engage a philanthropic specialist to help. In the meantime, check out these sites to match your interests to specific organizations.

Explore ways to better align your giving with your values. Visit our page on Strategic Philanthropy & Grantmaking for more information on lifetime giving strategies, sustainable and impact investing and other charitable solutions.

Ways to give

Once you’ve decided how much you want to give and to which organizations, the next question is how you want to give. There’s no right or wrong way to be charitable, but you have a variety of giving approaches to choose from:

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Direct Gifts

Writing checks and giving gifts of cash to individual charities is still the simplest and most common approach to giving. But it requires careful recordkeeping (for tax purposes) and doesn’t provide any sort of structure to your charitable giving.

Donor Advised Funds (DAFs)

An easy, low-cost way to get started with planned giving. You contribute cash or assets to open a DAF account and then direct charitable donations. You get an upfront tax deduction for any contributions to the fund but have no minimum required payouts each year.

Private Foundations

More complex and costly than DAFs, foundations are typically run by wealthy families as a way to fulfill their extensive philanthropic goals. Foundations must distribute at least 5% of their assets to various charities each year and require significant administrative oversight.

Young couple meeting with a financial advisor.

Charitable Remainder Trusts (CRTs)

You set up and fund an irrevocable trust that pays you or your beneficiary an annual income (either for life or a fixed period of up to 20 years). At the end of the trust term, remaining assets are then distributed to a named charity.

Charitable Lead Trusts (CLTs)

The opposite of a CRT, where the income generated by your trust assets is distributed to the named charity for a set period of time. Whatever assets remain at the end of trust period are then distributed to a non-charity beneficiary (such as a family member).

Perhaps most importantly, structured giving is a great way to teach young children about the importance of empathy and caring for others and carry on the family legacy through future generations.

Deepening your engagement

Over time, many people gradually want to deepen their relationship with one or more nonprofits they feel especially passionate about.

Donate

You may initially begin by donating money to various local charities such as food pantries or youth programs.

Volunteer

Once you identify one or two organizations that especially captivate your imagination, you may wish to further your involvement by volunteering your time, skills or fundraising expertise.

Direct

Eventually, you may consider joining the nonprofit’s board to help cultivate new skills, offer new insights and perspectives, and grow your network — all while supporting a worthy cause.

Considering a nonprofit board?

Board membership usually comes with an expectation of giving time, talent and treasure.

Time

Find out how frequently the board meets and what other additional time commitments are expected for events and/or committees.

Talent

Your ability to contribute needed skills and expertise will make you highly beneficial to the organization and help you feel more effective and fulfilled in your duties.

Treasure

Board members are often given a fundraising goal and are generally expected to personally contribute as an example to others. Make sure you’re comfortable with any expected financial commitment.

Do some research to find the right nonprofit. Online resources like BoardSource.org or GuideStar.org can help you identify an organization with a mission that aligns with your passions and interests as well as specific needs that align with your skillset.

Creating a legacy

Perhaps you’re part of a family with a long legacy of charitable giving through a family foundation.

Typically, your foundation will receive some assets during your parents' lifetimes and additional funding through their estate plan.
As long as certain distributions, conflicts of interest, and investment rules and regulations are met, foundation assets can grow income-tax-free.
But copies of foundation tax returns must be made available for public inspection — so your grantmaking will be a matter of public record.

If your family already has a foundation in place, make sure to consider the following: