Keeping Matters, Too

Giving Matters by Lawson Knight

The number of Giving Matters columns is approaching fifty. Of course the title is a double entendre. On the one hand, Giving Matters has been about the matters or methods of giving and discussions about how gifts are used in our area communities

On the other hand, Giving Matters has tried to highlight the critical role charitable giving plays in our society. It matters that we give.

In reviewing this growing body of work, I have never written explicitly that keeping matters, too. Here is what I mean. Before gifts can be made, most notably large gifts, it is important to know whether or not you have financial security, especially in retirement. The answer to this question of sufficiency is based on your values, your goals, some math and some assumptions. This conversation is often best accomplished with a financial advisor who has the tools to model various scenarios to assist you in visualizing and planning for your goals.

There is a second element to “keeping matters.” It is asking yourself what provisions you want to make for heirs. This component is perhaps more difficult to consider as compared to understanding what is necessary to meet your needs. A couple of obvious reasons for this discomfort have to do with dying and telling heirs, usually children, what you own and what they may or may not receive.

In one report I read on Wills and Estates, it is estimated that nearly 70% of Americans die without a Will. This statistic suggests that more than three out of five of us are failing at least one part of “keeping matters” as outlined above.

These ideas were made reality recently when a colleague set a meeting for me and an elderly woman to discuss a gift proposal. She launched the first salvo of our conversation with: “How it is that my life can improve by giving away what I own – sure sounds crazy to me!”

Her volley struck home because of the truth and poignancy of her remark. Even if I shared a series of proposals and ideas that made for a very good gift, the failure to plan adequately for her needs and possible provisions for heirs made it difficult to discuss a specific gift.

Unfortunately, in this example, my guest was not prepared to ask herself what she hoped to accomplish with her wealth and why—the goals and values part. Further, sharing out loud what she may or may not do for heirs was even more difficult. Needless to say, our conversation about giving was not a lengthy one.

As this column has always been about giving, the implications of the above are profound. Absent sufficient conversations about the matters of keeping and sustaining wealth, it is nearly impossible to discuss giving. If you can determine what you need to keep, you can better determine what you are able to give.