Are Charities in Trouble?

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Retirees are consistently charitable. They are the largest group of Americans supporting the many non-profits and charities that rely donations for survival. So what happens now that the new Tax Overhaul Bill is a reality?

Retirees that used to itemize deductions used their property taxes, perhaps state income taxes, and their charitable contributions to reduce their taxable income. Now, there are two fixed levels: $12,000 for individuals; $24,000 for married couples. So the question for charities now is, will the benefit of those charitable contributions disappear? Maybe not.

It’s nothing new, but the strategic method for those 70-1/2 and older to reduce taxable income by giving their entire RMD (Required Minimum Distribution) directly to charity is still a good one. But now, you might want to give twice as much every other year if that results in an amount to write off that is larger than the standard deduction.

Let’s say you are retired but not yet 70-1/2. You don’t have a Required Minimum Distribution, but you may want to take a distribution (earmarked for a charity) in order to avoid being in a higher tax bracket. It’s a painless way to give to charity or support the causes and missions that you care about so deeply.

For certain income levels, you might want to consider a Donor-Advised Fund (DAF). These funds—sort of like personal private foundations, without all the legal and accounting costs—allow contributors to donate money and take a tax deduction in the same year, then pay the money to selected charities over time. There are interesting advantages for a DAF. If you missed the 2017 cut-off, you might want to have a conversation with us to see whether either RMD or DAF plan could be to your (and your charity’s) advantage going forward.

Call us for free, no-obligation consultation or refer us to a friend you know who may need our expertise and experience.

No Joy in Failed Expectations

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It happens every year. We look forward to the holiday lights, the office party, impromptu get togethers with friends and family, and most of us look forward to giving and getting Christmas gifts. So why is this most joyful time of the year so stressful? Why are we so good at sucking all the goodness, peace, and good cheer into shopping madness, stress, and quick tempers?

The answer is obvious…or should be. It’s the disappointment of failed expectations.

failed expectationsSetting expectations for ourselves is meant to be energizing, motivating, and a guiding light toward a purposeful life. When done right, setting expectations for ourselves can make us better people, improve our relationships, and make us more valuable employees. When done wrong, as we tend to do with these short term “to-do” lists for the holidays, we fail and stress out. Why?

We too often set expectations to meet our own needs rather than the needs of those around us. But we can, with practice, develop a wider perspective.

Failed expectations are a double-edged sword. When we only consider our own need, we become depressed. When we only consider everyone’s else’s needs, we become emotionally strung out. The key is balance. Set expectations for yourself that are attainable and reachable, and let everyone else set their own expectations and allow them to be responsible for them.

This Christmas, let’s agree to love ourselves more, be more patient with ourselves, and accept our shortcomings. It may well be our greatest gift to those around us.

Merry Christmas!

Thanksgiving and Thankfulness

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When I was a boy, we sat around the Thanksgiving table, bowed our heads, and entered into what I recall to be the longest prayer of all time outside Midnight Mass at church. While the turkey dried out and the gravy got cold, my Uncle Frank passed right by the traditional “Bless Us O Lord for these thy gifts” and instead took the whole family on a trip through the bible’s 8 Beatitudes. At the end, everyone just sat there…speechless. We’d been asked to bless what was really important—the unbeliever, the sad, the poor. We asked for mercy, good conscience, peace and the privilege to suffer for the sake of righteousness.

prayingWhile Uncle Frank’s blessing placed as much “thought” on our table as did Mom’s cooking, Thanksgiving has never been the same for me since. I’m grateful for the holiday because it causes me to slow down, stop and be thankful for what we have…and to remember that because of our faith we have, and must give, so much more.

There’s a bible story in Luke where Jesus, on His way to Jerusalem, met 10 lepers who begged for healing. Jesus cleansed them all, but only one returned to Jesus, fell at his feet, and thanked him. While we always need more thankfulness in the world, let’s also be thankful that we don’t get everything we desire. If we did, what would we have to look forward to?

  • Be thankful when you don’t know something, for it gives you the opportunity to learn.
  • Be thankful for the difficult times. During those times you grow.
  • Be thankful for your limitations, because they give you opportunities for improvement.
  • Be thankful for each new challenge, because it will build your strength and character.
  • Be thankful for your mistakes. They will teach you valuable lessons.
  • Be thankful when you’re tired and weary, because it means you’ve made a difference.

 

—Joe