Ken Taylor discusses the benefits of philanthropy.

By Kenneth Gene Taylor CPA, CMA, MBA

The accumulation of wealth has little value in itself. We certainly cannot 'take it with us' when we die. It is what we do with what we have that gives meaning and value to our life.

There is great satisfaction to be had when we choose the road of philanthropy. By selflessly contributing to schools, libraries, museums, charities, art organizations, cities, or any of thousands of worthwhile causes for the benefit of our fellowman our own life takes on additional meaning. When we use what we have been blessed with for the benefit of others we find happiness in our own life.

Even better than giving money, the giving of our time and talents is of great benefit to those in need. It is by giving that we obtain that which is of value in life. As we serve others, we develop lasting friendships which enrich our own lives. We do not all have an abundance of the material things but most of us have time and energy which we can put to work for the benefit of others.

There are significant tax benefits associated with charitable giving. A taxpayer, who itemizes deductions in the preparation of a personal income tax return, may deduct the value of charitable contributions in determining taxable income. Thus an income tax savings is obtained each year a contribution is made. Note that a person cannot deduct the value of his/her own time contributed. The contribution is limited to the value of money or property contributed.

Furthermore, charitable contributions made by a will or a trust are generally excluded from an individual's estate when determining if the estate is large enough to pay an estate or gift tax. There are many charitable planning opportunities. Estate planning professionals and receiving charities can provide the technical assistance required to help an individual or family make their charitable contributions.

Giving away your excess is the right thing to do - even if there were no tax breaks for doing so. The tax breaks provide a nice fringe benefit to the donor.

Some people choose to accumulate wealth during a life time of hard work only to find that it brings little comfort in the end. The accumulation of wealth does not assure good health, love or solid family relationships. While leaving a modest inheritance to family members is of some value, particularly to assure the education of one's posterity or the perpetuation of a family business, it is sometimes unwise to leave a large estate to children who would be better served to earn their own way in this life. Leaving a large portion of an estate to qualifying charities may also minimize disputes among heirs over the distribution of an estate.

Schools, libraries, museums, charities, art organizations, cities and churches need assets to pursue their worthy goals. To maintain the health and vitality of our community and country we must voluntarily step up and help these organizations reach their objectives. By so doing each person who really desires an education can obtain one. The arts and sciences will thrive. Those with significant needs will find help. Everyone's life is better.

In summary, each of us should carefully consider the role of philanthropy in our own lives. Charitable giving should play a major part in our financial and estate planning. If we have not already begun the process, there is no better time than right now to begin.

Kenneth Taylor is a Certified Public Accountant with Taylor & Company PC and member of the Southeastern Idaho NPGC. He can be reached at 542-0327 or at cpataylor.com. Reprinted with permission.