One article started it all.
In 1997, Bill and Melinda Gates read an article outlining the diseases killing millions of children in foreign countries that were eradicated long ago in the U.S. They had the ability and funds to do something about this problem and began their strong history of giving to those in poverty and distress. Bill and Melinda Gates take on the tough problems knowing they have the resources and passion to see it through. That passion is infectious.
In 2014 alone, Bill and Melinda Gates counseled Anil Agarwal, billionaire founder of Vedanta Resources Plc., to donate more than half of his wealth to charity, and Warren Buffett made his single largest charitable contribution with a donation of $2.1 billion to the Gates Foundation. The impact of the Gates Foundation in the local economy and the world at large is immense.
Seattle has great entrepreneurs to look up to in the philanthropy arena as well as leaders in local charities, such as the Bill & Melinda Gates Foundation, The Seattle Foundation, and the many large local businesses offering loaned executive programs, time off for volunteering, or matching contributions.
Every individual I’ve spoken with in the tech community wants to better their team at work, provide needed resources to other start-ups, and/or give back to the community in a larger way.
So how do you begin making your mark on this world?
Today’s wealthy are interested in contributing to society in a meaningful manner, but the most effective way to charitably give is not always clear.
Create a vision and mission around your charitable impact. Similar to my article on Identifying Your Investment Philosophy, charitable giving requires introspection.
Why do you want to charitably give?
- Do you feel a sense of responsibility to the world at large?
- Are you passionate about sharing what made you successful?
- Are you thankful for opportunities given to you?
- Do you believe you can create significant improvement in a cause?
What are the causes you value most?
- What do you value in your life?
- What inspires you?
- What drives you?
- What legacy do you want to leave?
When do you want to give?
- Do you want to make annual contributions?
- Do you want to save money for large one time donations?
- Do you want to provide for charitable giving at your death?
Where will your charitable giving come from?
- Current cash bank account
- Social impact investing while still accumulating assets early in life
- Giving to specific charities
- Establishing a donor advised fund or private foundation
- Deciding to create your own public charity
What charities align with your values and desires for the community?
Once you have direction in the causes you want to champion over time, determine the charitable organizations whose purposes match that direction.
Who can help you accomplish your goals in charitable giving?
Make sure you have the right team in place – your accountant, estate lawyer, and financial advisor should work together to maximize opportunities. Bring in a charity representative for any organizations specifically chosen.
- How much control do you want to have over the use of any assets contributed?
- How important is the privacy of your charitable endeavors?
- What are the tax implications?
- What investment philosophy is best for your charitable assets to best meet your needs?
- Do you want to contribute assets (stock or cash), or focus on giving your time and expertise through board membership?
After walking through these questions, you should be ready to outline your next steps in implementing your charitable giving vision with your professional advisors.
Is your current financial advisor making a difference in your life? Book an appointment with me if you’re interested in financially living your mission and a value-centered life. Email me at [email protected] and we can schedule a time to review your own investment and charitable giving philosophy.
More information on our review process can be found at our Merriman Process Page.
