What are the different ways to become a philanthropist ?
Much like social work, philanthropy is a practice that the world needs to be more sustainable. It is a practice that appeals to the altruistic side of anyone who wants to be a philanthropist. So you can become a philanthropist even if you are not wealthy. This content reveals the ways to be a philanthropist.
Becoming a philanthropist through estate planning
Social work done with love can be done in many ways. Much like adrian Cheng's venture into philanthropy, you can also try to reap these natural benefits. Estate planning is a great way to do this. It allows you to support the causes that are important to you during your lifetime. The idea is to have your will drawn up, leaving a portion of your property to the worthy cause you are championing. This can be a sum reserved for a society that is committed to benevolence.
Becoming a philanthropist through a private foundation
In most cases, private foundations are initiated with the vision of promoting philanthropy through the charities that the founder chooses. If an organisation is registered with the private foundation, the latter can issue receipts in case a charitable donation is made to the foundation. In order to comply with certain rules, the private foundation may decide to retain this charitable donation for years. This retained donation can generate over the years an income that increases considerably tax-free. This is because a private foundation is tax-exempt.
Becoming a philanthropist through donor advised funds
Opting for directed funds allows you to enjoy the same advantages as private foundations. This is the most common method used by wealthy individuals to participate in charitable giving. In this case, the donor-advised funds also grow tax-free. Recipients of these funds can altruistically make charitable donations so that charities can benefit fully.
In this case you can receive a receipt if you are a donor. This receipt certifies that you are a donor of a wonderful charitable gift. You can then take action on the distribution of these funds to the beneficiaries. All of these actions are carried out without expecting a return.