Kicking off the series on the transformative power of thoughtful philanthropy and smart giving through the CMU Foundation
Welcome to the Smart Giving series, where we explore the transformative power of philanthropy with the CMU Foundation. This series aims to change the perception of giving by showcasing the profound impact of donor contributions at CMU. Through meaningful storytelling, we will highlight donors who demonstrate that giving back is not daunting but rather an inspiring and accessible way to make a difference.
Being a donor isn’t just about writing a check; it’s about making a meaningful impact. Many donors and potential donors wonder, “How much do I need to give to make a difference?” or “What if I don't understand the financial aspects or the best way to give?” These questions can make the idea of giving seem overwhelming. However, smart giving shows that anyone can be a donor, regardless of the size of their bank account or their familiarity with the vehicles to give. It’s about finding the right way to give that aligns with your personal goals and financial situation, making the act of giving both accessible and impactful.
Smart giving starts by recognizing that each donor has different philanthropic goals and financial situations. It involves understanding what the donor wants to achieve, discussing their financial circumstances and commitments, and finding the smartest way for them to accomplish their philanthropic objectives. By focusing on the donor's story and motivations, the CMU Foundation helps donors see the impact they can make on students' lives, rather than getting bogged down in financial details.
There are various methods that benefit both donors and recipients. Planned gifts, like using an IRA, can save taxes and make giving more affordable. Sharing retirement assets, such as beneficiary designations and qualified charitable distributions, helps donors and their heirs avoid taxes. Donors can also share appreciated securities, real estate, or life insurance to avoid capital gains taxes. Additionally, gifts in wills, bequests, or retained life estates allow donors to continue using their assets during their lifetime while planning for future giving. Charitable remainder trusts and gift annuities provide income for donors and their loved ones, ensuring their generosity has a lasting impact.
While these are just a few examples of vehicles used in smart giving, the possibilities for what one can do are vast. The key is not to get weighed down by the financial details but to focus on the impact you want to make. You don’t need to be an expert in financial planning; you just need a vision for change. The CMU Foundation is here to handle the ‘how,’ helping you turn your generosity into meaningful action.
“You can change the world more than you think if you give smartly; don’t underestimate your power as a superhero,” said CMU Foundation Associate Director of Development Rick Adleman. “We [have] Thor’s Hammer, Superman’s Cape — it’s more important what they want to accomplish rather than the tool they use — those [financial] terms put people in the wrong headspace.”
Smart giving empowers donors to make a significant impact without underestimating their potential. By utilizing various strategies, such as donor-advised funds and charitable trusts, tailored to their unique situations, donors can achieve their philanthropic goals while also reaping financial benefits. The key is to focus on what donors want to accomplish and how CMU can help them turn their vision into reality.
“You talk to the donor about what they want to accomplish, their financial situation, their commitments and how to allow them to give in the smartest way to accomplish their philanthropic goals,” said Adleman. “If we start talking about things like donor-advised funds, estate funds and all vehicles to give, they are no longer thinking about the story of how they can change a student's life. They start thinking about their finances and math and hit the brake pedal. If we approach them from the story side of things — what's the story, their donor hero, what was it they wanted to change — how can CMU help them accomplish that? The hook is their motivation: what makes them feel like a better person, what makes them look like a better person.”
In the coming weeks, we will share inspiring stories of donors who have transformed the lives of CMU students through smart giving. These individuals embody the essence of ‘giving smart,’ having begun their journey with heartfelt decisions. Their stories demonstrate that anyone can be a donor; all it takes is a clear vision of the impact they wish to create.
Giving wisely increases the impact of your kindness. By making smart choices, you can avoid taxes and provide for yourself and your loved ones’ income. Everyone’s wealth and tax situation are unique.
The CMU Foundation can guide you to conversations with the professionals you trust, which will maximize the power of your generosity. Reach out to Rick Adleman at 970.248.1871 or [email protected] to start a chat.