Investing in a Meaningful Way: Charitable Planning
Posted by Martin Heller Potempa & Sheppard, PLLC on January 17, 2020
Share This Article:
For many of us looking to plan for the future, you may be thinking of ways you can give back to your community and organizations you love to support, even after you are gone. That’s where charitable planning can be a benefit to you and your estate.
Not only will you be able to support organizations you care about, but there are tax advantages to doing so.
Let’s be honest. We like to support organizations that share our morals and social ideals. While this is nothing new, how we can invest and support these organizations has changed. Today, we have options to invest in socially responsible mutual funds and exchange-traded funds (ETFs). These funds invest in companies that not only look to create high profits but to encourage and promote company ethics, environmental friendliness, and human rights.
ESG Ratings: Look for companies that rank highly in environmental, social, and governance ratings.
Impact investing is a strategy that not only focuses on financial gains but also wants to generate positive social or environmental impacts.
ETFs you may want to support include those that focus on the environment, gender diversity, and reduced carbon emissions.
Local charities are probably close to your heart. Researching your community organizations can help you decide who you may want to give to. Check out Great Nonprofits for a list of charities in Tennessee, all sorted by social issues.
Make and Donate
If you are experiencing an increase in your ESG portfolios, you may want to take some of those appreciated stocks and donate them to an organization of your choice–like a church, university, local charity, etc.
For some, creating a donor-advised fund may be an option. In those cases, individuals who put into these funds may even see tax breaks. You give and get in many ways.
As you assess your situation, you may find creating a charitable trust is the way to go. But there are many options you can take in creating them. Charitable trusts you may consider include:
Charitable Remainder Trusts (CRTs)
Charitable Lead Trusts (CLTs)
Outright Distributions to Charity
Private Family Foundation
Worried you don’t have the capital to create a charitable fund? Not a problem. Many believe that charitable planning is only for the elite–but that simply is not true. Investors can start small and work within their means. Not only will you be benefiting the social good, but your financial investments will be well worth it.
Have questions about charitable planning in Tennessee? Let the Nashville trust attorneys at Martin Heller Potempa & Sheppard, PLLC guide you.
Estate planning can be difficult. Let the estate planning lawyers at Martin Heller Potempa & Sheppard, PLLC assist you in all your estate needs. We know you want to leave the world a better place. Let us help. Call us to learn more!
If You Need Legal Assistance, Contact MHPS Law Firm Today