Give Smartly This Year: Aligning Your Heart With Your Financial Goals

Give Smartly This Year: Aligning Your Heart With Your Financial Goals

The holidays bring out our generous side.

But smart charitable giving isn’t just about following your heart — it’s about aligning your dreams with your means.

Before you write that year-end check or click “donate now,” here's what you need to know to make your giving count.

Start With Your Passion

Figure out what really matters to you.

What causes keep you up at night? What change do you want to see in the world?

Your charitable giving should reflect your values, not just respond to the latest fundraising appeal in your inbox.

Understand Where Charity Fits in Your Life Goals

You shouldn’t prioritize charitable giving over retirement.

You’ll need that money someday.

Before you commit to any charitable donation, make sure you understand how much you need for your other financial goals and how to fund them sufficiently. Then you’ll know what’s left and can decide what portion you can afford to give.

This goes back to higher-level goal setting, which is critical in financial planning.

We can help you align your dreams with your means.

Keep Track of Everything

Add up all your donations at the end of the year. Keep a file of receipts.

If you get audited, you’re expected to show proof of giving. When you contribute to multiple charities throughout the year, this becomes harder to manage.

Do Your Research

Make sure the charity is reputable.

Know how the money is being spent. What percentage goes to the recipients? What percentage goes to management and overhead?

Services like Guidestar.org and Charity Navigator can help you figure this out. For local charities, sometimes word of mouth is good enough, but it’s still worth doing some basic due diligence.

Remember: Money Isn’t the Only Gift

If you don’t have a lot of money to give to charity right now, you can still make a difference.

Give your time. Donate in-kind services. Share your expertise.

The goal is encouraging people to give to charities in whatever way makes sense for their situation.

Make It Strategic

The year-end giving season creates urgency, but don’t let that pressure you into hasty decisions.

Think about:

• Whether bunching multiple years of giving into one tax year makes sense

• If appreciated securities might be a smarter donation than cash

• Whether your Required Minimum Distribution could go directly to charity (if you're 70½ or older)

Your charitable giving should be intentional, not reactionary.

The Bottom Line

Use your heart and your mind to give smartly.

Charitable giving is important, and it deserves the same thoughtful planning as any other financial decision. When you approach it strategically, you can maximize both your impact and your tax benefits.

If you want to discuss how charitable giving fits into your overall financial plan for the coming year, schedule a consultation and let’s talk.