Taxable Giving

I get a rash of letters this time of year asking for donations (I have 5 on my desk from last week). That and telemarketing must work or they would cease the practice. I've wondered if our tax code allowing deductions for charity actually encourages giving - either more, the timing, or both. It helps that Thanksgiving and Christmas align with taxable year end planning - combining a feeling of giving with minimizing the "gift" (tax that is) to the government.

I personally agree with Warren Buffet about estate taxes. I don't know his logic exactly - but mine is to create an incentive (even though the tax is a " death penalty") to encourage you to gift your money to the proper steward into the future. Notice I said the proper steward - because those that procrastinate in this decision end up giving it to the worst steward - the Government.

In Ron Blue's book "Splitting Heirs - Giving money & things to your Children without ruining their lives", he reiterates the point - "It's all God's". The only thing you are really doing with your money is finding the right steward - giving it to him/her (or the organization) and letting them do God's work.

Think about that - When you save money - you are just deferring the decision on it's productive use in God's eyes until you can decide who is the steward - you or someone else? When you spend money - you are choosing yourself as the "invest able steward" to grow the wealth further for God's purpose.

And when you give it to the government ......... one wonders it's purpose and the alignment?

So don't make giving a taxable moment. Give it while living to someone other than the government.

PS- SVP Cincinnati can always use a donation :)