Giving Back To Special Needs Agencies

By Rob Wrubel, CFP^®

Many of us have been touched by not-for-profit organizations that serve our family members with disabilities. These organizations include medical and rehabilitation services, job-placement agencies and certain employers, groups that provide food, shelter and clothing, schools, advocacy groups and more. What most of us do not recognize is that the funding for these organizations is usually limited and that they depend on donations of all sizes to keep the doors open and the services plentiful.

 If we step back and review the life of our family member or friend with a disability, there are usually several prominent organizations that jump out, and countless other ones that we never see. My family has been served by at least a half a dozen directly, and my daughter is only three and a half years old.

 We try to do something for as many of the groups as we can. In some cases, we participate in a walk and raise money by asking others to give. For other groups, we participate through board or volunteer commitment. And others, we donate goods or services. No one person or family can give to every group out there, but finding some that have made a difference in your life and contributing to them help insure their success and improve their ability to provide services.

 There are several ways to give to nonprofit organizations. I suggest you consider some way to make a difference with both your time and money. Contact me if you need help setting up a charitable giving strategy.

 You can give your time. Most groups need volunteers. Volunteers range from people serving on committees that assist in running the organization to performing tasks for putting on events. Other organizations need volunteers to work directly with people – like leading or participating in a parent group. Some people choose to be on the board of directors and contribute their time and energy to raising funds and providing assistance in governance issues.

 Nonprofit groups need donations and there are several ways to give. Obviously, you can make cash contributions. It can be a small amount or large; either way organizations need money for salaries, rent, supplies and operations. Most groups have some sort of campaign that you can participate in each year.

 Other people choose to contribute non-cash assets, like securities or real estate. Often, people give appreciated assets – such as a stock that rose in value from $10 to $100 over the past twenty years. There are some specific tax advantaged reasons why people choose this way of giving and it is best to speak with your accountant or attorney first.

There are multiple strategies for people who want to make significant gifts and many of these fall under the umbrella of planned giving. Planned giving takes place with gifts other than cash or gifts that take place over a period of time. Nonprofit development officers and executive directors prefer to be notified if you expect to make a planned gift. They want to honor planned gift donors while they are alive and make sure the gifts are used the way the donor prefers.

 Many organizations have formed legacy societies for those who make a significant contribution as part of an estate plan. A person that gives a few hundred dollars a year may be able to give tens of thousands upon their passing. These types of gifts can make a dramatic impact on a specific program within an organization or can lead to the creation of a fund to honor a specific person.

 Other strategies involve using charitable trusts, pooled income trusts, community foundations or family foundations. These techniques are used for a variety of reasons. Some charitable remainder trusts can be used to increase current income for donors and provide an immediate tax deduction while still leaving money to a charity. Pooled income trusts and community foundations enable donors to create a legacy while alive and to teach philanthropy to the entire family. Family foundations are typically used as part of an overall tax and wealth plan to carry out the charitable intent of a specific donor or family. They preserve the original mission of the donor and often give multiple generations the chance to participate in and remember the philanthropy of the donor.

 It is recommended you involve your planning team in your charitable intentions, whatever those may be. Financial advisors look to maximize benefits - like tax benefits, naming opportunities or creating lasting memories - while creating the potential to assist sustainability of a nonprofit organization. We assist in choosing how to give and which resources to use in giving. An estate planning attorney can help direct a legacy or trust plan that includes charitable intent. An accountant ensures that tax issues are addressed correctly and that you will receive maximum tax benefits for your charitable giving.

 Take a moment to think about the service organizations that have been involved in your life. Find a way to show appreciation and help make sure that group is there to continue working with your family and others in the future.

 Rob Wrubel, CFP^® is a Senior Investment Consultant with Cascade Investment Group, member FINRA & SIPC. Contact Rob at 719-632-0818. Cascade Investment Group is a fee-based advisory firm and is not a tax or legal advisor. You should always consult with your tax advisor or attorney before taking any actions that may have tax consequences.