As we come out of one of the most uncertain periods in living memory, many of us are evaluating what’s really important to us. For some, this has taken the form of thinking about our legacy – how can we make a difference?
One of the best ways to positively impact the world is charitable giving. It’s one of our values at Apt Wealth Partners and something we live every day through our company-wide and staff giving programs. We see first-hand the wealth of benefits it can offer, and we are passionate about helping clients build philanthropy into their financial planning.
While it’s always nice to give, however and whenever you can, structuring it as part of your financial plan makes sense on several levels. From understanding how much you can afford to give to making sure your funds have maximum impact, and of course, realising the tax benefits.
If you are in a financial position to do so, here are just some of the reasons you should consider giving back in 2022.
Support a community that needs you
We saw how disproportionate the impact of COVID-19 truly was, with those who were already struggling more likely to be set back by the pandemic. Yet, simultaneously, some charities saw a drop in donations as many families understandably reined in spending to cope with uncertainty.
This perfect storm left some charities in a vulnerable financial position, which can have a raft of negative impacts for the individuals and communities who rely on them.
While our recovery has been strong and many have been able to get back on their feet, it’s a good time to think about how you can help causes close to your heart.
Shape your impact and leave a lasting legacy
While it’s certainly a nice idea to help as many causes as possible, the reality is that our resources are finite. So it makes sense to set aside an amount you will give each year and choose one, or a small handful of charities to support regularly so that they can make the most of your donation.
Consider those causes that have personal meaning to you or you strongly believe in, as this will keep you engaged and help you shape your impact.
For some, this might be about giving towards care or research for a medical condition that has touched them personally. That’s certainly the case for me. I am a regular donor and a volunteer at Lungitude Foundation, which provided vital support to one of my loved ones.
Other causes may be those that resonate with your current life stage. For example, if you have school-aged children, supporting education charities or sponsoring a child to cover education costs may have meaning for your whole family.
Enjoy a raft of personal benefits
Charitable giving has many benefits, from emotional and health factors to tax deductions. While this latter benefit isn’t typically the motivation for giving, it’s something that should be taken into account in your financial planning.
When it comes to the impact on our wellbeing, the studies are unanimous. Giving makes us feel good. It can also teach the next generation about empathy and help children understand that there is more to the world than their experience in a developed country.
It goes beyond the emotional aspects to have a notable impact on your physical and mental health too. In fact, a 2021 study in the Journal of Happiness found that giving back – whether money or time – can decrease stress, lower blood pressure and even lead to a longer life.
There are many ways to build philanthropy into your financial planning, from regular financial giving to volunteering or leaving a bequest in your will. If you are in a position to give back, talk to your Apt Adviser today about how you can make a difference in 2022 and beyond.
General Advice warning
The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.
