May 2022

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Friends in Philanthropy: May 2022 Issue

Do philanthropists only make major donations so they can take tax write-offs? The general public might suspect that’s the case, but the numbers tell a different story.

When BNY Mellon polled 200 high-net-worth individuals about why they give, tax planning ranked far below other considerations.

Source: BNY Mellon Wealth Management Charitable Giving Study 2022

Granted, these answers are self-reported, so you might think respondents are downplaying their self-interested reasons for giving. But according to financial planner Juan Ros, these results track with what he hears from his own clients.

“Taxes are a nice side benefit, and sometimes taxes can be the catalyst for a larger discussion of charitable goals, but taxes are not a primary reason why people give,” Ros told CNBC.

The stories in this month’s issue speak to those higher priorities: the impact your generosity can make on a grateful stranger’s life, and the legacy you create when you do.

How an Alliance of Givers Is Fighting Human Trafficking In Florida (National Christian Foundation) – A retired energy executive details the steps he took to launch an “impact alliance” to help nonprofits and other experts collaborate on projects they couldn’t tackle alone.

Here’s What ‘Trust-Based Philanthropy’ Actually Means (The Conversation) – Can funders help more by participating less? Catch up on the concept of “trust-based philanthropy,” which has been picking up steam in recent years.

How Two Sisters Found the Woman Whose Kindness Changed Their Lives (CNN) – In 1999 a stranger on a plane gave them $100 as they fled the former Yugoslavia. Now thanks to a wide-ranging internet campaign, they finally get to thank her.

Make Philanthropy Part of Your Workplace Culture (Newsweek) – A CEO argues that when businesses make philanthropy “an everyday event,” it benefits everyone—companies, employees, and charities alike.

Tax Breaks Aren’t The Main Reason Wealthy People Give (CNBC) – A new study confirms what financial planners already know: major givers see tax breaks as a mere side benefit. Impact matters more, especially for younger donors.

Photos courtesy of Unsplash.

Kinship United often posts content and opinions that are of interest to the philanthropic community that supports Kinship United’s mission. Nothing published by Kinship United constitutes an investment recommendation, nor should any data or content published by Kinship United be solely relied upon for any investment, tax, legal or financial decisions. Kinship United strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.