A Personal Reality alternative to checkbook charity: Philanthropic Travel

Experiencing Himba hospitality, Namibia

Checkbook charity is a form of charity in which people give donations, but provide no other material support to charitable causes.

Many charities rely heavily on checkbook charity to fund major initiatives and their operating costs, and they are not huge fans of the slightly disparaging term "checkbook charity" as a result. Some donors and participants in charity feel that people should go beyond checkbook charity, and actually get involved directly in charitable causes.

The tradition of philanthropy is very old, and it is especially common among wealthier individuals, many of whom are pressured to contribute to charity.

For some people, checkbook charity is as far as they want to go, either because they are extremely busy, or because they feel that sending financial support is sufficient. Given the high operating costs of many charities, this logic is not entirely wrong: all the volunteers in the world are useless without funds to support their efforts.

Other people think that while writing checks is good, people should become more involved in charity. For example, people may volunteer with the charity's programs, or promote the charity in some way.

Wealthier individuals especially are often asked to organize charity fund raising events, using their considerable social clout to attract more donors.

People with skills such as medical training or construction skills may also be called upon to donate their abilities to charitable causes.

Make the Most of Your Money With a Year-end Gift
Philanthropic support of your favorite charity is an easy way to teach your kids, have fun make a big difference and have the benefit of tax savings. Following are helpful tips that can help make the biggest bang with your philanthropic family fantasy:

Review Your Portfolio. It may be wise to contribute appreciated securities that you have held more than one year, which may allow you to claim a charitable deduction at fair market value and avoid tax on the gain. Conversely, you may retain deductions for capital losses on your tax return by first selling your securities that have depreciated; then contributing the cash proceeds to charity. (If you donate those securities directly, you will not be entitled to take the capital loss.)

Write a Check to the Charity. Cash is always appreciated! Make sure your gift is postmarked by December 31 for proper credit.

Charge Your Credit Card before year-end as the charge date qualifies as the date of the gift.

Prepay a Pledge, either the entire amount or an upcoming installment. For many taxpayers it makes sense to "bundle" contributions into a single year. Ask your tax advisor whether this strategy may benefit you.

Consider a Life-Income Gift. Charities offer a variety of life-income plans to fit your needs. You can make a gift now, obtain tax benefits and receive income for the rest of your life. Ask your charity of choice to provide you with personal illustrations to assist you and your advisors in exploring these options.

Do Your Giving Early. This is especially true if you want to make a gift of non-cash assets (stocks, mutual funds, real estate, etc.) or life-income gifts (gift annuities, trusts, etc.) by December 31. Please note that, depending on how (and in what form) gifts are made, various rules apply for determining the gift date. It is best to contact the charity well in advance to ensure a smooth transaction.

Talk With Your Advisor. Before making a significant gift to a charity, you should have your CPA, attorney or financial advisor help you understand the impact of your gift on your estate plan or income tax return. Address financial and personal goals with regard to your charitable giving interests; what you want to give, the timing of your gift, and how a gift will be made. By asking these questions, you can determine what best meets your needs while benefiting a good cause.

Learn More:
Partner with Exquisite Safaris Philanthropic Travel
World Travel Market 2008 recognizes Exquisite Safaris Philanthropic Travel Industry Innovation and Leadership
The Advent of Philanthropic Travel

Philanthropic Travelers:
The One's Who Do: Philanthropic Travelers
Richard Branson: Philanthropic Traveler
David Chamberlain: Philanthropic Traveler

comments (0)