Steve Lear

A great way to raise national awareness about an issue is to dedicate an entire month to it. These issues can range from the well-known (Black History Month in February) to the less-celebrated (National Financial Literacy Month in April) to the just plain fun (National Eat Dessert First Month in August).

I propose that we officially recognize December as Generosity Planning Month. Why December? Because it’s known as the season of giving. Whether we’re buying Christmas and Chanukah gifts, stuffing bills into the red kettles of Salvation Army bell ringers, or scrambling to meet charitable tax deadlines, the message of this month is clear: GIVE!

In fact, Americans give nearly 30% of all their charitable donations in December, with 10% of that happening in the last few days of the month. This is undoubtedly driven by the tax codes, which allow charitable donations for the current year until December 31st.

But while it’s good to make every last-minute count, there is a better, less stressful way to approach giving: instead of using December to catch up on your charitable giving, why not use this time to set your giving goals for the coming year?

Why Plan Generosity

Planning is a way to be intentional about your two most important resources: time and money. Yet, charitable giving is often reserved for “someday” when we anticipate having more assets. The problem with deferring generosity is that despite our good intentions, someday never comes. The most important part of creating a generosity plan is making the commitment to begin today.

How to Get Started

You might think you can’t possibly squeeze this exercise into a December already packed with church, school, and social events. But as you’re wrapping up the past year, it’s actually the perfect time to begin planning your giving goals for the coming year. Below are a few ideas for getting started.

• Finding Time
  • Holiday Gatherings – As you gather for December celebrations, make your generosity planning a family affair. What causes do you care about? Which organizations will you support? Take time together to discuss how you might also help friends, relatives, and future generations.
  • Financial Planning Meeting – Let your financial advisor know you want to discuss charitable giving goals in your annual meeting. Putting this on the agenda will make sure these goals are addressed.
• Finding Money
  One of the easiest ways to get started is to designate your financial giving as a formula. You might consider using one of the following scenarios depending on your situation:
  • Still Working: Give at least 10% of your after-tax income to help others; if you can afford to give 20%, even better.
  • Retired: Give 5% of your unearned income and 1% of your net worth annually.
  • Estate Planning: When dividing your estate, consider adding another child – and that child is the community. If you think this conversation applies only to the rich, think again. Any assets you have when you die are considered your “wealth” or “estate.” You can choose to distribute it however you wish – leaving it to family or charity or dividing it to include both.

Whatever your plan, make sure you’ll stick with it by designating an amount that works for your budget. Once you’ve determined your formula, you can decide which people and organizations to support. You might also choose to set aside a certain amount for spontaneous giving.

Whether your wealth is great or small, every contribution of your time, talent, and treasure matters!

Benefits of Planned Giving

Once you begin planning your charitable contributions, you’ll find that your giving becomes more:

• Intentional – You are more likely to connect with causes that truly inspire you.
• Impactful – Steady, sustained giving ensures that the people and causes you support will continue to thrive.
• Joyful – Building a giving plan into your budget puts you on track to achieve your goals. You won’t have to worry or second-guess where the money comes from to support the causes you care about.

Let’s Make December Count

Take advantage of December’s “giving” mindset to outline a charitable giving blueprint for the coming year. Then, use the quieter months of January and February to create a specific giving strategy.

Planning your generosity this way will be a gift you give to the community and yourself, putting you on the path to truly living your values and creating your legacy.