Giving Your Time, Talent and Resources

Courtesy of: Juan Ocanas, Financial Advisor at Morgan Stanley

What mark do you want to leave on the world? What are the values that drive you? What matters most? Whether it’s your time, talent, or making a contribution, giving back can be one of life’s greatest rewards.

Philanthropy is being democratized. Individual donors have never been more empowered to make a difference. With just $25, you can make a micro-donation to a farmer in Peru, help cover upfront costs to build a girls’ school in Pakistan, or invest in a diversified portfolio of nonprofits, microfinance institutions, and social enterprises. You can also help support a cause without spending any money at all by joining a campaign or volunteering.

With so many ways to give, it’s important to be strategic about your philanthropy so you can make the most of your contributions.

Here’s a framework to help you determine your own approach to giving:

How You Give:
Time & Talent. One of the ways to help support causes and organizations you are passionate about is by volunteering your time and talent. A big advantage of volunteering is that it can allow you to see the direct result of your contribution.

Resources. Making a substantial contribution or donation may get a little more complicated. One of the most common strategies is donating directly to a charity, but there are plenty of other approaches to consider. A Financial Advisor can help you assess the pros and cons of each approach and how you can incorporate giving into your broader financial plan.

Here are some of the various ways you can put your charitable dollars to work:
1. Direct donation. A direct donation is a gift that is received in full by the recipient of choice. Nonprofits that are 501(c)(3) public charities are tax-exempt, and therefore the government generally allows you to deduct any direct donations (subject to income limitations) from your taxable income.

2. Donor-Advised Fund (DAF). A donor-advised fund is operated by a public charity. As the donor, you recommend the organizations that are to receive grants from your DAF, but all administrative duties and taxes are handled by the charity.

3. Designating a charity as a life insurance beneficiary. Another way to share your wealth is to designate a charity as a beneficiary on your life insurance policy. This is relatively easy to do, and you have the right to revoke the gift at any time by simply changing the beneficiary of the policy. While this type of giving may provide an estate tax deduction, you will not receive any income tax deduction.

4. Charitable Trusts. There are two main types of charitable trusts: Charitable Remainder Trusts and Charitable Lead Trusts.

Charitable Remainder Trusts (CRTs): CRTs make distributions to a non-charitable beneficiary (such as yourself) and after a certain period, distribute the remainder to a charity you care about..

Charitable Lead Trusts (CLTs): CLTs operate differently than CRTs. CLTs make distributions to the charitable organization for a term of years and then distribute the remainder to a non-charitable beneficiary.

5. Charitable Gift Annuity (CGA). A CGA is a contract between you and a qualified charity in which you make a gift to the charity and, in return, the charity provides you (or other annuitant(s)) with a lifetime fixed income stream.

6. Private Foundation. A private foundation is a nonprofit organization generally funded with gifts from a small number of individuals, families and/or corporations. Private foundations are required to distribute at least 5% of their net investable assets each year.

Before making a charitable commitment, make sure to do your due diligence so you can identify the right opportunities, manage expectations, and ensure accountability.

There are countless ways to use your resources—money, time, networks, expertise, and perhaps even social influence—to give back. Once you have identified the opportunities that are most aligned with your passions, the key is determining how you can allocate your time, talent or contribution to make the greatest impact on the causes you care most about. Whatever the size and scope of your giving, a Financial Advisor can help you make a plan that reflects your priorities and works within your budget.

Disclosures
Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

Juan Ocanas is a Financial Advisor in Naples at Morgan Stanley Smith Barney LLC (“Morgan Stanley”). He can be reached by email at Juan.Ocanas@MorganStanley.com or by telephone at (239) 449-7853. His website is https://advisor.morganstanley.com/the-calleja-group

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be appropriate for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for legal matters.

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Juan Ocanas may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where he is registered or excluded or exempted from registration, https://advisor.morganstanley.com/the-calleja-group

Juan Ocanas
CRPC®
Financial Advisor
Associate Vice President
Family Wealth Advisor
Portfolio Manager
Financial Planning Specialist

Morgan Stanley Naples Branch
(239) 449-7853
https://advisor.morganstanley.com/the-calleja-group

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