When a high net worth individual (HNWI) becomes involved in charitable giving their goals are not limited to chalking up a gift tax deduction or preserving their legacy. One of the most compelling reasons why HNWI donate money is to make a difference in the world. They specifically seek out causes where the money they give will transform into actions that can be seen and felt. In order to qualify, a nonprofit must be able to demonstrate real results from donations.
HNWI hire and work with experts regarding how to handle all aspects of their finances. They will expect the same service from an organization to which they are considering making a gift. The charity needs to provide access to folks who have high level expertise and can provide informed answers to questions about why they should choose this particular charity and what their contribution will mean to the organization’s ability to affect real change.
Tax Considerations
Giving Tuesday, which occurs on November 30, 2021, is a phenomenon that began in 2012 and is referred to as a “global generosity movement.” It is a day that everyone, regardless of their level of wealth, can do some good in the world through donating their time or money. Giving Tuesday coincides with the holiday season, encouraging people to think beyond buying gifts for friends and family and asks them to consider others who may not be as fortunate.
For HNWI, Giving Tuesday provides an opportunity to fulfill charitable giving goals before the end of the year. It’s also a last chance to review tax planning and calculate the need for additional tax deductions. All of which ties into estate planning in general, and can benefit from the use of trusts and other vehicles that minimize the tax implications of passing extreme wealth on to family or nonprofit organizations.
Looking Ahead
At JMV Law Office, we present options that allow our clients to take advantage of these and other pathways toward creating a secure future for beneficiaries as well as facilitating charitable endeavors. High net worth estate planning is a highly complex and specialized area of the law in which we have extensive experience.
Whether you’re interested in setting up a program that makes annual donations to causes specifically on Giving Tuesday or want more information on the best way to protect your wealth now as well as in the future, please contact our office to set up a consultation.