A year ago this week we wrote about reaching out to those who are less fortunate through both traditional and creative avenues. If you will recall, the recession led our country to the largest drop in charitable giving in over fifty years in 2009.^1. Unfortunately, the massive economic downturn wasn’t mended overnight and charitable giving once again took a hit as families across our great nation struggled to keep their head above water.

This not a news flash: Approximately 40% of the world’s population survives on less than $2 per day; and 11.1% of our own nation’s households (13 million homes) were “food insecure” and faced the challenges of hunger even before this last recession began in 2007.¹ It seems we get caught up in our own struggles and tend to close our financial ranks, when in reality most of our issues are not insurmountable when compared to the larger scheme of things. God has surrounded us with an abundance of blessings even in the worst of times, so I encourage you to consider reaching out in whatever manner you can.

To get you started, here are a few tips, facts and ideas, both monetarily and otherwise:

Don’t know where to start? Don’t forget to look close to home. Charities that provide direct services to people in need experienced the largest drop in donations last year; yet these are the very organizations that experience the greatest increases in demand during a recession.¹ Think food banks, shelters, crisis organizations, social services, meals on wheels, etc.

Can’t give monetarily? 4 in 5 charities report that they use volunteers.¹ Ask your local charities how you can help. And/or consider donating new or nearly new items. Or sell these items on Ebay, Craigs List, etc. and donate the proceeds.

What percentage of your gift goes to the cause? First, research your charity: the Better Business Bureau (bbb.org) has a link for investigating most charities; the Charity Navigator website (charitynavigator.org) is devoted to providing you information about everything from how much of your money is spent on what… to their ethical practices… to how much executives and leaders are paid to manage the charities… some pretty interesting stuff. Then just trust that your charity will utilize your gift wisely: donations designated for specific activities can hamstring charities and become a roadblock in the charity’s quest to do good work.

Don’t need your paid life insurance policy? Though the benefit is delayed until death, a gift of a life insurance policy can benefit a charity significantly. Additionally, like any charitable contribution, the value of the policy is tax deductible, based on the lesser of the policy’s fair market value, provided by the insurance company or premiums paid.

What about IRA or appreciated stock that you don’t think you’ll need? Now you’re thinking outside the box! There are a few pieces of legislation ending this year which pertain to certain tax incentives, so I encourage you to speak with your Life Planner and other necessary professionals as soon as possible to see if you qualify. And remember: tax incentives for charitable giving are about encouraging you to reach out, not about cheating the government.

Want to get your family involved and keep them involved? Talk with your Life Planner about setting up a family foundation or donor advised fund and name your children and/or grandchildren as its board of directors or trustees who choose the philanthropic causes to support on an annual basis.

During this holiday season… Be Inspired! And God Bless!

Securities & Advisory Services offered through VSR Financial Services, Inc., a Registered Investment Adviser and Member FINRA/SIPC. Kennedy Financial Services is independent of VSR Financial Services, Inc. VSR does not provide tax or legal advice.