6 Tips for Giving in Harvey’s Aftermath

Just over a week ago, Hurricane Harvey hit southeast Texas, ravaging the people and property in its path. In addition to this devastation, however, Harvey has also prompted a heartening display of human resilience, generosity, and selfless service. Across the affected areas, thousands of volunteers have spent time organizing donations, helping evacuees, and mucking out homes that flooded. And even more, people have been inspired to offer financial support to the non-profit organizations that are assisting victims of the storm.

This brings us to the topic of this post. With so many non-profit organizations in need, which organizations should you support, and how should you support them? To help address these questions, we put together the following six tips:

  1. Focus on the issues that matter most to you. Give to an organization that you care about. Maybe the church you attended growing up flooded or the community center your children took swim classes at needs help with repairs. Perhaps you’ve always had a soft spot for animals or the elderly. In the wake of this crisis, there is a wide array of non-profits in need of financial support, choose those that are closest to your heart.

  2. Confirm the recipient is an IRS-registered tax-exempt organization. In times of crisis, emotions run high, and unfortunately, there are those who will try to take advantage of the situation. Review the organization’s Form 990 to make sure it’s a legitimate non-profit organization or check the IRS website to confirm the organization’s status. Be aware and do your homework.

  3. Make sure the nonprofit is a responsible steward. Your donation is an investment and you should treat it as such. Simply put, know how your money will be spent. Websites like Charity Navigator and CharityWatch rate nonprofits based on assessments of financial efficiency, accountability, and transparency. They measure the percentage of the budget spent on programs and services the nonprofit delivers (versus fundraising or administrative expenses) and the fundraising efficiency of the organization (how much does it cost the nonprofit to raise $1 in charitable contributions), among other factors. These websites also give the nonprofit organizations an overall grade or rating, so you can make a comparison of the different organizations you are researching.

  4. Measure the impact of the charity. Consider volunteering with the organization you donated to, this will let you see firsthand the impact your funds are having and will help you evaluate if this is an organization you would want to consider giving to again.

  5. Consider donating appreciated assets instead of cash. With the recent bull market lasting close to a decade, this could be an opportune time to evaluate your appreciated assets. By donating securities or property with embedded capital gains to a tax-exempt nonprofit, you may be able to avoid taxes, thereby increasing the impact of your gift.

  6. Find out if a donor-advised fund is right for you. If you aren’t certain about which organizations you want to support, you can still take advantage of charitable deductions this year by setting up a donor-advised fund (DAF). With a DAF, you can spread your giving out over time and benefit from a current-year tax deduction.

We hope you find these suggestions useful. One of our passions at Kings Path is helping our clients maximize the impact and enjoyment of their philanthropy. If you’d like to learn more about how we can assist with the development of your philanthropic strategy, please reach out to us.

Kings Path Partners

Kings Path Partners is an independent advisor guiding individuals, families, and foundations in the stewardship of wealth. We provide personalized financial and investment consulting services for clients desiring to steward their financial resources well. Our commitment is to put your interests first, serving and guiding you with honesty, respect, and care. We seek to significantly raise the bar of personalized service provided by the financial adviser industry.

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Kings Path Partners, LLC (KPP) is an SEC-registered investment advisory business based in Sugar Land, Texas. KPP has published this article for informational purposes only. To the best of our knowledge, the material included in this article was gathered from sources KPP believes to be accurate and reliable. That noted, KPP cannot guarantee that this information is accurate and complete and cannot be held liable for any errors or omissions. Readers have the responsibility to independently confirm the information herein. KPP does not accept any liability for any loss or damage whatsoever caused in reliance upon such information. KPP provides this information with the understanding that it is not engaged in rendering legal, accounting, or tax services. In particular, none of this published material should be considered advice tailored to the needs of any specific investor. KPP recommends that all investors seek out the services of competent professionals in any of the aforementioned areas. With respect to the description of any investment strategies, simulations, or investment recommendations, KPP cannot provide any assurances that they will perform as expected and as described in this article. Past performance is not indicative of future results. Every investment program has the potential for loss as well as gain.

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