As children become more independent and retirement draws closer, you may find yourself with something you haven't had much of in decades: free time. The weekends once filled with children's activities are opening up, and the responsibilities that have guided your schedule for years are changing.
That freedom brings new possibilities. Perhaps there's a cause you've always wanted to support more actively, a local organization you'd like to get involved with, or an opportunity to share the experience you've gained throughout your career. You may also be thinking about how to use your financial resources to support the people and communities you care about.
This stage of life offers an opportunity to be more intentional about giving back. And with a little planning, you can find ways to contribute that reflect both your personal interests and your financial priorities.
What Does Giving Back Look Like for You?
People often associate "giving back" with making a monetary donation. But there are plenty of other ways to make a difference. Your time, professional experience, and personal connections can be valuable resources for organizations that need support.
Maybe there's a local nonprofit you've supported for years or an organization whose mission reflects your own values. Perhaps a personal experience has inspired you to support medical research, educational opportunities, or services for families in your community.
Would you rather make small contributions to many organizations or develop deeper relationships with a select few? Do you enjoy supporting causes behind the scenes, or would you find it rewarding to take a more active role?
There's no need to spread your resources equally across every cause that interests you. You might choose to concentrate your financial support on two or three organizations while volunteering your time elsewhere. Or perhaps you'd prefer to develop a closer relationship with one nonprofit, learning more about its needs and identifying where your contributions would be most useful.
The important part is deciding how you'd like to participate, rather than simply responding to requests for donations as they arrive.
You Have More to Offer Than Money
With fewer day-to-day demands, you may have more flexibility to get personally involved in causes you've supported financially for years.
Maybe now's the right time to start volunteering with a local organization. You might enjoy mentoring young professionals, serving on a nonprofit board, or lending your professional skills to an organization that could benefit from your experience.
These opportunities offer something beyond the satisfaction of supporting a cause. They can introduce you to new people, provide opportunities to keep learning, and give you a way to stay connected to your community as your daily routine changes.
Of course, having more time available doesn't mean you need to fill every hour. Be selective about the commitments you take on. A board position, for example, may involve regular meetings, fundraising responsibilities, and work between meetings. Before accepting a new role, consider how much time you want to commit and whether it leaves room for the other people, interests, and experiences you want to prioritize.
Where Does Generosity Fit Into Your Financial Plan?
If charitable giving is becoming a bigger priority, how will it fit into your full financial picture?
You may be in a position to contribute more financially than you could earlier in life. But retirement also brings important decisions about how you'll use your savings. Travel plans, family support, healthcare expenses, and your own long-term financial security all deserve consideration.
What would you like your giving to accomplish? Would you enjoy making regular contributions to organizations you support? Is there a particular cause you'd like to help through a larger gift? Or are you more interested in establishing a charitable legacy that continues beyond your lifetime?
Timing matters, too. Giving during your lifetime allows you to see how organizations put your contributions to use and build relationships with the people doing the work. Planned giving, on the other hand, provides an opportunity to support causes through your estate while preserving resources for your own needs during retirement.
You don't necessarily need to increase how much you give. You may find that a more deliberate approach to your existing contributions better reflects your priorities.
Philanthropy can also become a family activity. Involving children or grandchildren in charitable decisions creates opportunities to talk about shared values, community needs, and the responsibilities that come with wealth. You might invite family members to help select organizations to support or establish an annual tradition of giving together.
These decisions are easier to make when you understand how charitable contributions fit alongside your other financial commitments. Your financial plan can help you evaluate what you're comfortable giving today and what you'd prefer to reserve for future needs.
Giving Strategies Beyond Cash Donations
Once you've decided how much you'd like to contribute and when, the next question is how to make those gifts.
Writing a check is straightforward, but other charitable giving strategies may offer tax advantages or additional flexibility, depending on your circumstances.
For example, donating appreciated investments directly to an eligible charitable organization may allow you to support a cause without selling the assets and realizing capital gains. This approach may be particularly useful if you hold investments that have increased substantially in value.
A donor-advised fund (DAF) offers another way to organize your giving. You contribute assets to the fund, potentially qualify for a tax deduction in the year of contribution, and recommend grants to eligible charities over time. This provides flexibility if you'd like to make a larger contribution now but take more time deciding which organizations to support.
For eligible IRA owners age 70½ or older, qualified charitable distributions (QCDs) allow funds to be transferred directly from an IRA to qualifying charities. When the requirements are met, these distributions are excluded from taxable income and can count toward required minimum distributions.
You can also incorporate charitable giving into your estate plan through beneficiary designations, charitable bequests, or certain types of trusts. These arrangements allow you to provide for organizations you care about while coordinating your charitable intentions with the legacy you want to leave your family.
These are just a few of the available strategies. Each has different rules, potential tax benefits, and considerations. The appropriate approach depends on your financial circumstances, the assets you hold, and what you hope to accomplish with your giving.
What Do You Want This Next Stage to Look Like?
Your financial plan isn't only about having enough for the future. It can also help you decide what you want to do with the freedom and resources you've built.
As your responsibilities change and new opportunities open up, you have the chance to make more deliberate choices about how you spend your time and use your wealth. Those decisions don't all need to be made at once, and your priorities may change as you settle into this next stage of life.
At The Hatlestad Group, we help clients make thoughtful decisions about how to use their wealth in ways that reflect their personal priorities. If you're considering a more intentional approach to charitable giving, we'd be happy to help you explore your options and incorporate your philanthropic goals into your overall financial plan.
The Hatlestad Group is an independent wealth management firm based in Edina, Minnesota, primarily serving successful head-of-household women, late-career executives, and pre-retirees. With a tailored approach to fee-only comprehensive wealth management, they empower clients to live out their next chapter with vision, wisdom, and resources, creating a purposeful and meaningful future. They can be reached by phone at (763) 259-3637, via email at info@thehatlestadgroup.com, or by visiting their website at thehatlestadgroup.com.
The information presented is based on sources believed to be reliable and accurate at the time of publication. This material is for educational purposes only and does not necessarily reflect the views of the author, presenter, or affiliated organizations. It should not be construed as investment, tax, legal, or other professional advice. Always consult a qualified professional regarding your specific situation before making any decisions.