Folks come into our office every day, nervous about the
fiscal cliff. They ask where to put their money. Folks ask about investing in
Gold. Some go a bit further and dream about buying guns and ammo and burying supplies in the back yard. Others ask about stockpiling a year’s supply of food and
water. I have even had folks ask what type of bunker they should build.
After a few of these meetings in a week I feel inclined to
turn into myself and begin stockpiling these items that seem to give us security.
My mind drifts back to the beginning of the movie Red Dawn.
It is interesting where we turn for our security.
In the midst of the chaos in Washington I have enjoyed sharing
conversations in our community discussing the ‘Fiscal Cliff’ and addressing
some of these concerns about our economy and our nation’s future. It
has been fun to use these opportunities to share the impact
that these discussions on Capitol Hill may have on the charitable deduction. It
has been a blessing to speak in front of four different groups in Colorado this month,
encouraging charitable giving in lieu of these changes.
I am convinced that we will not find solutions in a bunker
full of food-stuffs, guns and gold. Turning to those things draws us away
from relationships, into ourselves and into a mode of selfishness. We start
saying, “You just have to take care of #1.”
I believe the solution lies closer to this charitable
deduction and more specifically, to the generosity associated with it. The
attached video is a wonderful conversation on the importance of charitable
giving and the legacy of generosity in our nation.
No one ever said, “That selfish hermit with the arsenal in his bunker changed my life.” No, the folks who impact lives and make
us better are the ones who give of themselves. They are the ones at breakfast
with a teen teaching them the right way to live. The ones who make a
difference are those who are in the community, raising money for gardens or art
or education. They are reaching in their own pockets to build community and investing in things that last.
Something special is happening this year. Even with fears of
the ‘Fiscal Cliff’ there is a phenomenon occurring. Instead of hoarding and
turning into themselves, folks are generously giving money away.
According to this Wall Street Journal article, Fidelity
Charitable has seen a 63% rise in contributions. Schwab Charitable has seen a
74% jump. We have seen the same trend among our clients. Even as our country
faces these major issues, many are giving. They are giving more than they ever
have. This isn’t a socialist movement. These folks aren’t being forced to give.
They are not giving reluctantly or under compulsion, they are giving
cheerfully.
What is going on?
These families are investing, not for their own good, but
for the good of communities that they believe in. They are using their
resources to impact lives and to bring a community together and to move our
country forward.
As Washington
threatens the tax benefits associated with the charitable deduction, the folks
at The Brookings Institution are dreaming about a ‘Super Deduction for Charitable Giving.’ They argue that this sort of temporary, extra deduction
would create jobs by boosting the non-profit sector. They also suggest that the
‘Super Deduction’ would allow folks to lower their tax bill by investing in
their communities.
Whether we see a ‘super deduction’ or limitations on the
current deduction, what do you see as worth investing in? What areas in your community
do you care about? What folks do you believe in? As we think of folks that we
care about we have two choices. We can invest in a larger bunker and more
food-stuffs… Or we can invest in our friends and neighbors and rebuild our
communities together.