Home Career Tax breaks are not the main reason for charity with high prices

Tax breaks are not the main reason for charity with high prices

160
0

Maria Tejeira Images of OJO | Getty Images

Tax breaks are not the main incentive for charity among the super-rich, according to the inaugural BNY Mellon Wealth Management A study of charity.

The report, surveyed 200 people with a fortune of $ 5 million to more than $ 25 million, found that the top three motivators were personal satisfaction, connection to a business or organization, and a sense of duty toward return.

On the contrary, tax breaks are among the top three reasons for donating money to charity, the results show.

More from Personal Finance:
Buyers make concessions to conquer the house. What are they doing
What to do while you wait for a student loan forgiveness
What to think about when postponing for the near future

“The results of the BNY Mellon study are not surprising,” said Juan Ross, a certified financial planner with the Forum Financial Management of Thousand Oaks, California. “The data from year to year was very clear, especially when it comes to donor motivation.”

“Taxes are a nice side effect, and sometimes taxes can be a catalyst for a broader discussion of charity, but taxes aren’t the main reason people give,” Ross said.

Younger donors

According to a report that surveyed investors from different generations across the country, there is more interest in philanthropy among millennials and Generation X.

According to the report, nearly three-quarters of wealthy millennials and 8 out of 10 Generation X investors have a strategy of charitable donations.

“Younger generations are more inclined to charity, and they care more about influence,” said David Foster, CFP and founder of Gateway Wealth Management in St. Louis. “They don’t have a lot of money yet compared to the older generation, but when they show up, the landscape will look completely different.”

The younger generation is more inclined to charity and cares more about influence.

David Foster

Founder of Gateway Wealth Management

Moreover, young wealthy investors are more likely to seek advisors who share their values, he said. “Their money and their values ​​are inextricably linked in such a way that your senior client’s money and values ​​are not.”

Indeed, while 62% of respondents agreed that it is “important” for their welfare consultants to understand their values, with a higher percentage among millennials, Generation X and investors with wealth of at least $ 25 million.

The report also shows a shift in donations over the past couple of years, with most wealthy investors giving more since the pandemic began.

However, it is difficult to predict whether growth will continue, as charity strongly correlates with the stock market, according to Giving USAtracking U.S. charity for over 60 years.

However, experts are optimistic about the future of donation.

“The United States has always been a generous country, and philanthropy is part of our cultural DNA,” said Ross of the Forum Financial Management.

Source link

Previous articleCalifornians may see mandatory water outages amid a prolonged drought
Next articleWhy did New York schools pay $ 25 million for the site of former hot dog Nathan?