Jun 21, 2022
How philanthropy can bridge the gaps
The world we live in, especially the past 18 months, reminds me of a book I read back in high school called A Tale of Two Cities, by Charles Dickens. If you’ve read it too, you may recall this story has enduring themes on oppression, isolation, compassion, justice, social anarchy, sacrifice, resurrection, and the renunciation that fosters renewal. Even if you haven’t read it, these are timeless themes that we are dealing with today as much as the readers of A Tale of Two Cities were when it was published in 1859.
Think for a moment about the “two cities” as a metaphor representing the gap between where society is now and where we want it to be. I believe philanthropy can serve as a bridge between this gap. Each of us can define the “two cities” however we want based on our own values, experiences, needs and desires. Philanthropy can be a meaningful connection to help us elevate to a new common ground. It can be an overarching positive mindset that spurs action to alleviate tension, lift others up and make a difference—whether it’s simply lending a helping hand, finding a solution to a problem, or joining a cause to make an impact.
Why do I use the word philanthropy instead of charity? Philanthropy and charitable giving are often used interchangeably, and while both are important in the non-profit sector, they are different. Philanthropy is the strategic process of understanding our underlying values, identifying the root causes of systemic issues, and then taking action to find a solution to make the world a better place. It’s longer-term in nature. Charity is a compassionate response to an immediate crisis or a short-term need. The two go hand in hand.
Philanthropy’s big-picture, strategic view is fulfilled through the actions of charities. Sometimes charitable entities are used when you have multiple goals or multiple members you want to benefit from your gifts. Keep in mind, philanthropy and charitable giving aren’t just for the high-net worth. Everyone can enjoy the benefits of helping others in need, gaining a feeling of fulfillment, and receiving the financial benefits through an income tax deduction and/or the removal of assets from your taxable estate.
How to Move Forward and let Philanthropy Bridge the Gap
- Define values and issues – start your philanthropic plan by defining your values, where you see a problem or a need, and where you want to make a difference.
- Define the resources you need – work with a financial advisor to first help you determine the capital needed to support your lifestyle for the rest of your life. Then we can help you make philanthropy a part of your long-term financial plan, incorporating giving into your everyday life at a pace that is comfortable for you.
- Define the excess funds available for others – your financial advisor can help you determine the excess capital available for (1) gifting to your family if this is your goal, and/or (2) gifting to charitable organizations. Then we can help you make philanthropy a part of your long-term financial plan, incorporating giving into your everyday life at a pace that is comfortable for you.
- Teach others to “fish” for themselves – you might want to select charities that are empowering beneficiaries to grow out of their current situation and pay it forward. Or, you may want to involve your family ) in your philanthropic plan to teach them about your family values and how to make an impact. This can be a powerful way to leave a legacy.
For more information, please contact your CI Private Wealth Advisor.
ABOUT THE AUTHOR
Dana Pingenot, CFP®, CLU®, CAP®
Dana is a Managing Director at RGT Wealth Advisors where she focuses on strategic financial planning, family governance, multi-generational estate planning, and philanthropic strategies for high-net-worth families. Her experience in the financial planning profession spans over 35 years.
Dana has appeared multiple times on *D Magazine’s list of “The Best Financial Planners in Dallas” and Texas Monthly’s Five Star Wealth Manager list. She received the DFW Financial Planning Association’s Honor’s Award in 2012. She remains actively involved in the community and our profession.
Dana is a CERTIFIED FINANCIAL PLANNER™, a Chartered Life Underwriter®, and a Chartered Advisor in Philanthropy®. She completed her Bachelor of Business Administration Degree in Financial Planning from Baylor University, where she was a charter member of the Financial Management Association, and a music scholarship recipient, playing her trombone.
CONTENT DISCLOSURE
This information is for educational purposes and is not intended to provide, and should not be relied upon for, accounting, legal, tax, insurance, or investment advice. This does not constitute an offer to provide any services, nor a solicitation to purchase securities. The contents are not intended to be advice tailored to any particular person or situation. We believe the information provided is accurate and reliable, but do not warrant it as to completeness or accuracy. This information may include opinions or forecasts, including investment strategies and economic and market conditions; however, there is no guarantee that such opinions or forecasts will prove to be correct, and they also may change without notice. We encourage you to speak with a qualified professional regarding your scenario and the then-current applicable laws and rules.
Different types of investments involve degrees of risk. Future performance of any investment or wealth management strategy, including those recommended by us, may not be profitable, suitable, or prove successful. Past performance is not indicative of future results. One cannot invest directly in an index or benchmark, and those do not reflect the deduction of various fees which would diminish results. Any index or benchmark performance figures are for comparison purposes only, and client account holdings will not directly correspond to any such data.
Advisory services are offered through CI Private Wealth and its affiliates, each being a registered investment adviser (“RIA”) regulated by the US Securities and Exchange Commission (“SEC”). The advisory services are only offered in jurisdictions where the RIA is appropriately registered. The use of the term “registered” does not imply any particular level of skill or training and does not imply any approval by the SEC. For a complete discussion of the scope of advisory services offered, fees, and other disclosures, please review the RIA’s Disclosure Brochure (Form ADV Part 2A) and Form CRS, available upon request to the RIA and online at https://adviserinfo.sec.gov/. We also encourage you to review the RIA’s Privacy Policy and Code of Ethics, which are available upon request.
Our clients must, in writing, advise us of personal, financial, or investment objective changes and any restrictions desired on our services so that we may re-evaluate any previous recommendations and adjust our advisory services as needed. For current clients, please advise us immediately if you are not receiving monthly account statements from your custodian. We encourage you to compare your custodial statements to any information we provide to you.
