Develop long-term charity plans

The recent decision by Facebook founder Mark Zuckerberg and his wife Priscilla Chan to pledge $45 billion to charitable organizations has provided extra visibility to philanthropy this holiday season. This gift – one of the largest charitable contributions ever — is a wonderful wake-up call for those who want to have an impact by developing a long-term charitable giving plan.

I represent more than 50 individuals and couples in metro Atlanta who collectively contribute millions of dollars annually to various health care, education, anti-poverty and other nonprofit organizations. This group includes senior-level executives, professionals, business owners and retirees who give substantial sums to numerous Atlanta-based nonprofits in a thoughtful and meaningful way.

But other individuals who want to make a difference often lack a solid strategy. They are focused on their companies, careers and family throughout the year. When year-end comes, they often make “one-off” contributions that, while useful, simply don’t have much impact on the individual’s giving or the organization that receives it.

These people have worked hard for decades to achieve their personal financial goals. For those who want to achieve the same potential in their charitable giving, I propose the following steps:

• Use the holidays to develop a long-term strategy for future charitable giving.

• Rather than simply check off your contributions by Dec. 31, use this time to build a game plan. Start by listing the causes or charities that you care about. If health care is your passion, review the hospitals and nonprofit organizations in metro Atlanta focused on the services you would like to see receive more support. Don't limit your choices; if there are several causes or organizations you would like to help, put them on your list.

• Develop a charitable giving budget. Most people have never determined how much money they have available for charitable giving. Take the time to develop a long-term financial plan, including retirement, to determine the surplus funds available in your budget. Most people often want to give more than they can afford, so building a budget will put you on a path to give generously.

• Allocate funds to various causes. Allocate your contributions wisely to have an impact on various organizations. For example, you may want to give 50 percent to organizations focused on education, 30 percent to health care and 20 percent to anti-poverty organizations.

Once you’ve determined the amount available to give, there are plenty of long-term financial options to fund a long-term plan. A tool I use often is called a donor-advised fund. It provides people with an immediate tax deduction yet allows them to spread their financial gift out over several years.

Here’s how it can work. A woman I counsel who makes generous donations to her church and other organizations recently faced a potentially large tax bill. We developed a solution that enabled her to contribute funds for philanthropy that could be spread out over several years, but also set aside money for any immediate needs.

Her long-term giving plan included money for one of her most passionate causes, a halfway house for girls rescued from the sex slave trade. But when an unexpected wave of girls came to this charity for help, my client was able to provide them with a quick injection from funds she had already set aside. Solid strategic planning allowed her to meet this need, helping the organization and giving her a tremendous amount of satisfaction.