Your retirement years can bring not only financial confidence but also a profound sense of purpose. How so? Many have found that charitable giving is a powerful way to create a lasting impact, offering tax benefits and personal fulfillment. 

In fact, it’s estimated that nearly 80% of pre-retirees and retirees plan to prioritize charitable giving during retirement, viewing it as an essential part of their financial and personal goals.

This blog post by Bulman Wealth Group explores effective charitable giving strategies for Californians nearing or in retirement, focusing on maximizing their impact, legacy, and financial well-being.

Beyond Tax Benefits: The Transformative Power of Giving

While it’s valuable to understand the potential financial benefits of charitable giving, it’s equally vital to consider the lasting, transformative effects of giving. Here are three powerful ways it can make a meaningful impact:

• Personal fulfillment: Charitable giving can enrich your retirement by adding a layer of emotional and spiritual reward. Studies show that giving can enhance personal well-being and create a sense of fulfillment, providing a joy that financial security alone cannot offer.

• Legacy building: Leaving a legacy through giving allows you to make a difference that endures well beyond your lifetime. By incorporating giving into your estate or retirement plans, you can support causes you care deeply about and create an enduring mark that reflects your values.

• Community Impact: Giving back strengthens the community and contributes to societal well-being. Whether supporting local initiatives or larger movements, charitable donations create positive ripple effects, inspiring change and supporting programs that make California a better place for all.

Tailored Strategies for Californians: Maximizing Impact and Tax Benefits

Donor-Advised Funds (DAFs)

For Californians, DAFs offer a flexible way to manage charitable donations over time. Contributions to a DAF provide immediate tax deductions while allowing you to distribute funds strategically to charities in the future. DAFs can also offer long-term growth as investments within the fund continue to grow tax-free until you decide to donate. By involving the family in DAF decisions, you can instill a legacy of giving, ensuring that family values endure even after your passing.

Bulman Wealth Group’s team of fiduciary financial advisors in California can help you evaluate if a DAF makes sense for your legacy planning.

Charitable Trusts

Charitable trusts are powerful tools for maximizing the impact of your giving while minimizing taxes. Options like charitable remainder trusts allow you to provide for heirs, support philanthropic causes, and receive a charitable tax deduction. Different trust structures offer flexibility depending on your goals and tax considerations, making them ideal if you want to make a significant impact while planning effectively for estate and retirement tax benefits in California.

Planned Giving

Planned giving strategies like Qualified Charitable Distributions (QCDs), bequests, and gifting appreciated assets offer impactful ways to support charitable causes. QCDs allow individuals over 70 1⁄2 to donate up to $100,000 directly from an IRA, reducing taxable income while satisfying RMD requirements. Gifting stocks or real estate to charity can also minimize capital gains taxes, enabling a full-market-value donation without a tax burden.

Bequests allow you to leave valued items like jewelry, art, or other assets to charities or individuals. This lets you support causes close to your heart by gifting specific possessions or financial assets, potentially reducing estate taxes. 

Charitable gift annuities offer an opportunity to support a charity while securing a lifetime income stream. In exchange for your donation, you receive regular payments, with any remaining funds ultimately supporting your chosen charity. These planned giving strategies help reduce taxable income, lower estate taxes, and build a lasting legacy that matches your philanthropic goals.

Choosing Charities That Align With Your Values

Research and Evaluation

To maximize the impact of your charitable donations, start with thorough research to ensure your chosen charities fit your values. Look for transparency in financial practices and how much of each dollar goes directly to the cause.

Review charity ratings: Platforms like Charity Navigator and GuideStar provide ratings on charity effectiveness and transparency.

Check mission alignment: Confirm the charity’s goals align with your personal beliefs and the difference you hope to make.

Local Impact

Supporting local charities allows you to see the impact of your contributions firsthand and make a difference in your community. Consider organizations in California that address regional issues, from environmental conservation to educational programs.

Cause-Based Giving

Focusing on specific causes that are personally meaningful to you can deepen the fulfillment gained from charitable giving. Whether supporting healthcare research, social justice, or animal welfare, cause-based giving lets you concentrate your resources on issues that resonate most.

Going Beyond Donations: Maximizing Your Personal Impact

Volunteerism and Advocacy

In addition to financial contributions, consider donating your time and skills. Volunteering and advocacy can directly support the organizations you care about, amplifying your personal impact. Your experience and insight can help nonprofits thrive and reach more people in need.

Educating Others

Share your knowledge and experiences with friends, family, and community to inspire others to give back. By raising awareness of the causes you support, you contribute to a culture of giving and motivate others to get more involved.

Creating a Culture of Giving

Engage your family and friends in charitable activities, from volunteering together to organizing donation drives. By fostering a culture of giving with others, you can extend the impact of your philanthropy and inspire future generations to continue your legacy of giving.

Partner With Bulman Wealth Group

At Bulman, we view charitable giving as a financial planning tool and a path to personal fulfillment, legacy building, and making a meaningful community impact. With decades of experience, we help clients navigate strategies like Donor-Advised Funds, charitable trusts, and planned giving to maximize the benefits of giving.

Our California-based services focus on five key areas: investment management, retirement income planning, healthcare in retirement (including long-term care planning in California), legacy planning, and tax planning. Together, these services offer a comprehensive approach to building financial confidence and effective retirement planning in California.

Contact us today to explore charitable giving options that reflect your values and enhance your legacy.

All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or an indication of future results.

Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an SEC Registered Investment Advisor. Insurance products and services are offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. Being registered as an investment advisor does not imply a certain level of skill or training.

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