It’s More Than Money

“For it is in giving that we receive.”
                                               ~ St. Francis of Assisi

Question: We’re spending time with our kids and grandchildren this fall and wonder how to gently pass along our values on philanthropy and charitable giving. What do you suggest?

Answer: Your desire to establish a philanthropic legacy is admirable. There are many ways to get children and grandchildren involved in charitable giving while creating new family traditions. Telling stories is a powerful way to begin. If you’re involved in any charitable organization, whether you’re on the board or volunteering your time, your family will likely be interested in your experiences. You can share the most meaningful involvement you’ve ever had that began with generosity. The desire to create positive change or outcomes is a meaningful conversation to have, as well as potential tax benefits.

What’s your family’s mission statement? Our family motto is Remember to Always Be Kind, Loving, Caring or Sharing, or KLCS for short. Many families have a unique slogan, saying or resolve that serves as a foundation. Actions do speak much louder than words. Sharing stories about how others generosity may have impacted your life will get your family’s attention and interest while letting them get to know another side of your life. Finding a shared passion or vision focused on life lessons may help communicate your goals for a family legacy.

Our family has had the opportunity to make gifts to many organizations and individuals. The most meaningful and rewarding (so far) is the gift to a Women’s Shelter. Several of the residents, and one in particular, sent handwritten heartfelt thank you notes. Other examples are encouraging young students to perform random acts of kindness and log them on an app and at the end of the school year, the school with the most entries is awarded funds for the school to use for STEM (Science, Technology, Engineering and Math) equipment they may not otherwise be able to obtain. Going to these classrooms, explaining the concept to the teachers and reading the entries each day is the best rate of return.

An attitude of gratitude is contagious. If you’re planning on spending Thanksgiving together, this is a great time to share what you’re thankful for and discuss the importance of giving to those who may be less fortunate financially. This pre-Thanksgiving activity could become a family tradition, helping to instill your values and traditions in future generations. Connecting family values with individual interests can be the bond that keeps the family together for many generations. Caring for others is part of being a good citizen. Even the youngest of our three grandchildren can name the four things you can do with money which are invest, donate, save and spend. Examples of things we do are adopting a family for Christmas, volunteering at a food bank, cooking meals at shelters, or having a birthday party with gifts or donations going to a special charity rather than presents.

A family mission statement can provide a reason for the gang to meet on an annual or quarterly basis to discuss gifting. It’s the opportunity to share how you’d like to make a difference. It’s invigorating to hear about the social issues our grandkids care about and want to support.

According to the Journal of Adolescence, adolescents whose parents made any donation to a charitable organization were 18% more likely to do so themselves. If the parent discussed the contribution with the child, they were 33% more like to donate on their own. It’s evident that we tend to mimic those behaviors that are reinforced by actions and words.

When heirs do receive an inheritance, a shocking “70% of first generation wealth is not purposefully transferred,” according to Investment News. So what’s the problem? Bluntly stated, financial literacy is lacking. As a teenager, Sunday dinner was where I learned about the relationship between responsibility and privileges. My father would illustrate the concept on the back of paper napkins that responsibilities always came before privileges.

Our family has a donor-advised fund which sounds fancier than it actually is. The grandkids are involved as the junior board of directors and are identifying recipients, allocating funds and actually making the contributions. Board meetings are special events as are the field trips and visits to organizations they’re interested in supporting. This helps to cement the relationship between intangible funds and tangible results. The hope is that decades from now, their grandkids will gather to make distributions to causes they’re passionate about, extend generosity, and really make a difference in people’s lives. They may even remember those dinner table talks we have with them. The power of example is strong and the gift of making a difference is the best reward. If you’d like to know more about how to structure these ideas and implement them in your family, we’re here to help. Stay focused and plan accordingly.

The data and information contained herein was obtained from sources considered to be reliable, but accuracy and completeness are not guaranteed. This information is not meant as tax or legal advice. For more information on tax rules and other laws, which are complex and subject to change, consult your tax planning and legal professionals. Views are as of October 1, 2019 and subject to change based on market conditions and other factors.

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This article is provided by Darcie Guerin, CFP®, Vice President, Investments & Branch Manager of Raymond James & Associates, Inc. Member New York Stock Exchange/SIPC 606 Bald Eagle Dr. Suite 401, Marco Island, FL 34145. Call or email Darcie at 239-389-1041 or darcie.guerin@raymondjames.com with questions or suggestions for future columns. Visit her website: www.raymondjames.com/Darcie.