Giving and Sharing Considerations for gifting and sharing your resources
Why Create a Plan for Giving and Sharing? When life events occur, many aspects of your well being may begin to shift. Just one major change can have a ripple effect into several key areas of your life. As you begin to manage change and the resulting transitions, you may feel the need to make a gifting or sharing commitment to those you care about. We have found from experience that you ll be best served if you and your advisors take time to craft a very personal plan to ensure your gifting decisions have the desired impact and reach the right people or causes. This short considerations workbook is designed as a first step toward a written Giving and Sharing Plan. I hope it will help you and your advisors sort though some of the personal and financial issues that include: With Whom, How Much, How and When to make your gifts and share your resources. Best wishes, Susan Bradley CFP, CeFT Founder of the Sudden Money Institute Page 2 of 14
Old Chinese Proverb If you want to be happy for an hour, take a nap. If you want to be happy for a day, go fishing. If you want to be happy for a month, get married. If you want to be happy for a year, inherit a fortune. If you want to be happy for life, help someone else. Page 3 of 14
Discovery Who should benefit from this life event? What is your personal and family history of giving and sharing? What is the best possible impact you can make outside your family? Page 4 of 14
Why What does sharing wealth mean to you? How would it feel if you didn t share? Who or what inspires you to share? Page 5 of 14
To Whom How do you choose your recipients? Could you prioritize the recipients? Do you have an accountability standard for how money is used? What expectations do you feel from others? Page 6 of 14
How Much How will you determine how much to share? Is it important that your family participate and continue your philanthropy? How much will you allocate to each family member to give? Page 7 of 14
How Will you give outright gifts? Will you give annual gifts from a designated annuity or trust? Are tax deductions important? Page 8 of 14
When Do you want to give immediate gifts (cash, appreciated assets, use assets such as machines, autos)? Do you want to make testamentary gifts? If you want to have a staged giving plan, should it be a formal endowment or an informal, see-how-it-goes-at-the-year-end decision? If you want your heirs to be philanthropic, how will you encourage them? Page 9 of 14
Sample Giving and Sharing Protocol Based on a 60-something couple s initial gifting ideas after the sale of their family business. They agreed on some gifts but had different and sometimes conflicting ideas on other gifts. This was the first time they clearly saw the overview of their idea. They exercise and the graphic below helped them work thru the differences, blend some ideas and delay the few things that needed more time and consideration. WHO? WHEN? Church University Food Bank WHY 10% of gross income 2.5 million Amount to feed 1,000 families/year HOW MUCH? HOW? December of each year This year As soon as foundation is created Cash or stock Stock to their endowment Family Foundation Page 10 of 14
Giving and Sharing Protocol What Next? WHO? HOW MUCH? WHY? WHEN? HOW? Action Who When Page 12 of 14
Steps in the Right Direction What more do you need to know? What needs more consideration and time? Who should be consulted? What should be done now? Page 13 of 14
Giving and Sharing Protocol WHO? HOW MUCH? WHY? WHEN? HOW? Page 14 of 14