A money revolution has transformed personal finance over the last three decades. Credit cards, mutual funds, online trading, 401(k)s, and Roth IRAs are only a few of the many innovations that have created greater financial choice for millions of ordinary people. The financial markets are no longer for the wealthy. Wall Street has gone mass market and middle class.

The "democratization of finance" is now spreading to the charitable world. No longer do you have to be an Andrew Carnegie, a Henry Ford, or a Bill Gates to set up a foundation. For instance, a growing number of mutual fund companies offer charitable gift funds, typically with a $10,000 minimum, that share many characteristics with family foundations. With over half of American households owning stock, more middle-income families than ever are donating appreciated stock rather than cash. There has been a proliferation of sophisticated giving techniques geared toward allowing well-off families to make meaningful charitable contributions with significant estate planning benefits.

When it comes to personal finance, values should come before money, before budgets, before calculations, and before products. Yes, personal finance ends with managing money well, but it begins with thinking about values and passions. Personal finance is putting money behind the question, "What really matters to me?" Exploring what you want to do during your retirement years is as important as funding a retirement savings plan.

The same holds true with charitable giving. It should be treated as a core part of any long-term money plan, much like investing for retirement or saving for your children's college education. Taking the time to place your charitable giving into an overall financial plan will ensure that yours efforts to build a better world won't go to waste.

 


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