We go through stages or cycles in various aspects of our life.

Most people generally realize this when it comes to our physical personality and career. There is also a financial life cycle. There is a general accumulation stage, which includes building a financial base and starting individual financial habits. Once a career is established and wealth has grown, people are in the rapidly accumulating stage of their financial lives. If people have established good financial habits and taken advantage of the opportunities available to them as their careers evolve, they achieve financial independence, where they do not have to work to cover their costs. expenses. Eventually, these financially independent people enter the conservation and distribution stages of their lives.

Philanthropy has life stages too, and the Pikes Peak Community Foundation (PPCF) supports charitable giving at every stage of financial life. Leslie Sabin, Vice President of Finance and Operations at PPCF, provides insight into how charitable inclined people can effectively implement their giving.

In the early stages of the donation life, starting with a first adult job through early 40s, strong feelings about values ​​and interests begin to spark charitable desires. Intention and focus can lay the foundation for a lifetime gift, just as good financial habits provide a foundation for larger finances. During this phase, collective giving can be effective. Organizations such as the PPCF have funds that focus on general issues such as housing, education, and the environment. Individuals can donate to these funds and the effect of many donors can be more impactful than individual contributions.

It is important to verify that the organization to which you give your donation in the form of mutual funds is legitimate. The company’s philanthropy should be efficient and its operations should be transparent, so that you can verify its accountability and oversight of funds.

Ultimately, there are tax advantages to charitable giving. But at the start of the financial phase of accumulation, many people don’t have enough taxable deductions to itemize.

Some people want to give directly to what they believe is good causes that are not charitable. These funds, including the GoFundMe pages, may have causes you want to support, but they do not have the responsibility and oversight of foundations and other charities, and there is no tax deduction for donations. to non-charities. You will need to confirm that the funds are going to the desired cause.

This stage in your financial life may include learning how to properly monitor charities for the clarity of their service. Look at the part of their budget that goes for overhead, as opposed to what goes to the causes they support. Several organizations assess the effectiveness of charities. For example, CharityWatch (www.charitywatch.org), has a rating system for charities and efforts. This will help you prepare when choosing specific charities instead of pooling your charitable donations.