If you’re looking for a way to take the next step on the journey of generosity, it might be time to open a donor-advised fund. As a much simpler alternative to a private foundation, a donor-advised fund hasn’t just become one of my favorite ways to give — it’s turned into one of my favorite financial planning tools, period.
Between the COVID pandemic, economic uncertainty, racial unrest, political polarization and natural disasters, many people have called 2020 the worst year ever. But rather than hunker down and wait for this year to end, we should ask whether God has specifically prepared us for such a time as this.
In the past, I’ve written about the dangers of hoarding wealth, and how our financial abundance should lead us to be radically generous, not more secure. But as the black bodies pile up due to systemic injustice, it’s undeniable that too many affluent white Americans also hoard their privilege. It’s time to be generous with our privilege and use it to fight deep-seeded racism in our country.
As the controversial migrant caravan marches north on this Election Day, I’m making a $5,000 donation to World Relief. The gift to the humanitarian aid organization that helps immigrants and refugees isn’t a political statement, though. It’s a decision rooted in faith and the realization that political divisiveness has caused charitable giving to become too insular. I want my charitable giving to cross the political divide and international borders to reach those who need it the most.
A personal spending limit – a self-imposed annual consumption cap or “salary” – limits lifestyle inflation, and directs extra income into higher saving and giving rates. It’s a money guardrail that focuses spending on basic needs and fulfilling discretionary expenses, and it leaves much less room for empty consumerism. For now, I’m setting an annual spending finish line of $100,000, with the goal of reducing it over the next few years.
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