financial planning

No, I am not talking about a Dr. Seuss story.  FISH is an acronym for:

·         Financial

·         Intellectual

·         Social

·         Human

·         [Enterprise]

 

Photo credit: http://www.craftforum.com/f22/diy-wood-fish-shaped-piggy-bank-10454/

Over the past few weeks a couple clients have asked me about how and when to share their family wealth and social capital plans with their children and other family members.  This of course is different for each person and each family so there is no hard and fast rule.  There is however some general things that all wealth creators should consider when planning for the transition to the next generation or out into community:

1. How much is enough? As Warren Buffet said, "I want to leave enough for my kids so that they will do something, but not so much that they won't do anything."  Allison Maher from Family Wealth Coach calls it Knowing Your Number.  What do you need to live on and your inheritors to live on to be comfortable, what do you want government to take in taxes and what do you want your community to receive."

This post comes courtesy of Sybil Verch of Raymond James. Please make sure to view this interview with Sybil entitled The Wealthy Life.

Before you say “I do,” it’s a good idea to sit down and discuss your finances. Even if you’re already married or in a committed relationship, scheduling a regular “financial date” to proactively talk about moneywill help avoid any unpleasant surprises in the future. Here are some ideas of what to talk about:

The last week of December is the final push that charities make for year-end donations.  Even with this added push, it does not mean that donors should rush into a major decision because they realize they have to get the tax credit taken care of.  Strategic giving is as much about finding the right charity partner to execute on your social vision as it is about financial planning.

 

Here are some things to keep in mind for these end-of-year charitable transactions:

Based on some of the conversations I have been having at TheCardThat.Gives booth at Sunridge Mall and via the various social media and blog posts, there is a general consensus that the average donor doesn’t know, or understand the costs of doing the business of philanthropy.  

It’s time to change this.  

This week I had the privilege of attending the Nexus Youth Summit in Washington, DC.  The purpose of this summit is to bring together leaders in philanthropy, social enterprise, social finance and the Next Generation for a series of conversations that lead to action around the critical issues facing our communities - locally, nationally, internationally.

One session that stood out in particular for me was a session on Climate and Philanthropy.  A panel discussion with:

As you can see, this panel cross the spectrum of Republicans and Democrats with a view to find economic solutions and market-based solutions to environmental problems.  

This week I will be presenting at Wink Calgary.  This is a lunch-time session where I walk a woman named Jane through her legacy planning and charitable gift strategies.  As I was thinking about how best to present the information in a condensed amount of time, and still provide enough information for individuals to be able to start the work on their own, or seek out additional resources as needed, I reflected on what my parents and grandparents have taught me.

For the past several years I have been blogging about the challenges facing the charitable sector, in large part, because of the way that it has been structured, and continues to be managed.  The expectation that the CRA or the IRS has any role or responsibility in managing the way that the sector operates is not only foolish, but unrealistic.  Below is a blog post originally written by Nadine Riopel,The Savvy Do Gooder on just how the sector is broken. I will post part two in the coming days. 

Why we need strategic philanthropy, not just good financial records…

There has been a lot in the news over the past few months about transparency in the charitable sector.  Most of these articles end up honing in on the cost of raising a dollar, overhead expenditures and tax compliance.  While these financial issues are definitely part of the equation, they should not be the basis upon which strategic philanthropy is based. 

Addressing complex social issues is not just about the financials, it is about the effectiveness of solving the social problem.

Dexterity Consulting is just going through its annual strategic planning review and stakeholder engagement.  As a reader of this blog your ideas, suggestions, input is welcome so that we can provide even better service to our clients.