Give All You Can
Charitable giving can be a complicated decision. Finding the proper balance between providing for our families, for the needy, for business uncertainties, and for spiritual obligations can be a struggle for many. That's where our strategies can help.
Most of us have multiple motives for helping the less fortunate and supporting the many worthwhile causes. Nevertheless it is comforting to know that a coordinated strategy of charitable donations combined with an information advantage and alternative investments is a prudent tax and wealth maximization strategy.
High net worth / high income earners can in essence increase their net after tax income by about 33% - on average under current tax regulations. For example, a professional - athlete, advisor, executive, entertainer, or entrepreneur- earning $2,000,000 per year, with such a coordinated tax and investment strategy can reasonable expect to take home as much as someone earning $3,000,000!
And how much could those tax savings earn over years if invested in the appropriate investments? Over paying taxes literally costs many high net worth / high income professionals hundreds of thousands if not millions of dollars each year!
Our special value is in providing customized and coordinated charitable programs specifically for the unique goals and objectives of each individual yacht owner.
Thus, when discussing an individual's personal goals and objectives, in light of the many rewards of charitable giving:
it’s difficult to know where to begin.
So maybe we should start at the beginning - from birth.
Many scientists postulate that as social animals we humans are hard-wired from birth with empathy and a desire to help others.
And apparently as adults, acts of charity can help spice up your sex life according to recently published research in BMC Evolutionary Biology.
Men and women find altruistic traits attractive in a long-term relationship
Women also find acts of charity sexually desirable in a one-night stand
Other research confirms a biochemical explanation for the positive emotion associated with assisting others in need.
In one study using MRI scans, scientists were able to monitor in real time, the brains of participants while they made decisions about donating some of their research payment to charitable organizations.
When participants chose to donate, their brain’s mesolimbic system was activated. That’s the same part of the brain that’s stimulated in response to monetary rewards, sex, food, and other positive stimuli.
Choosing to donate also activated the brain’s subgenual area. That’s the part of the brain that produces the feel-good chemicals, like oxytocin – a truly remarkable hormone that some have called the most amazing molecule on the planet and what really makes us human.
One observer calls it – “a love potion that is built right in”:
“Often referred to as the "love molecule", oxytocin is typically associated with helping couples establish a greater sense of intimacy and attachment. Oxytocin, along with dopamine and norepinephrine, are believed to be highly critical in human pair-bonding. But not only that, it also increases the desire for couples to gaze at one another, it creates sexual arousal, and it helps males maintain their erections. When you're sexually aroused or excited, oxytocin levels increase in your brain significantly — a primary factor for bringing about an orgasm. And during the orgasm itself, the brain is flooded with oxytocin — a possible explanation for why (some) couples like to cuddle after.”
Furthermore, oxytocin has been shown to facilitate wound healing, in preventing obesity, as an anti-depressant, a stress reliever, and to improve digestion by reducing intestinal inflammation- and those are just some of the benefits science has identified thus far!
It seems that science has validated that it truly is in fact more blessed to give than to receive!
Likewise, in so keeping with those that are spiritually inclined; giving and benevolence are fundamental tenets of most major religions. In fact, in some faiths, not only do charity and good works influence one's immediate happiness , but they are essential to one’s salvation and upon which one will be judged after death and eternally rewarded or doomed accordingly.
Consequently benevolence appears to provide the giver many rewards - in this world and the next. Not only does giving make you feel good, it also appears to enhance one’s health and the health and well being of society at large.
And it can also enhance one's wealth - if done properly- as part of a coordinated comprehensive wealth strategy. For the more one gives to charity, the less one pays in taxes, the more one has to invest in more productive endeavors.
Many governments around the world encourage charitable giving to various degrees. The more individuals do directly to help those in need through churches and charities, the lower the demand upon government resources. That is one reason why many governments around the world encourage philanthropy by offering tax incentives.
The United States government is one of the most generous in this regard and provides many substantial tax and financial incentives to donors to facilitate and reward philanthropy.
Yet with all of these benefits available, way too few take full advantage of all of the opportunities.
Most people - including many CPAs and other advisors - are creatures of habit, like the familiar, tend to resist change, and continue to overly rely upon the status quo and overlook the balance.
For the most recent year available, the IRS reports that less than 1/2 of 1% of the tax payers that made over $200,000 maximized all of their available deductions.
The reasons are many, and some are addressed in other areas of this this site.
"Instruct those who are rich in this present world not to be conceited or to fix their hope on the uncertainty of riches,but on God, who richly supplies us with all things to enjoy.
Instruct them to do good,to be rich in good works,to be generous and ready to share, storing up for themselves the treasure of a good foundation for the future,so that they may take hold of that which is life indeed."
He who gives to the poor will never want, But he who shuts his eyes will have many curses. 28:27
"He who is gracious to the poor man lends to the Lord, and He will repay him for his good deed". 19:17
But whosoever has the world’s goods, and beholds his brother in need and yet closes his heart against him, how does the love of God abide in such a man?