How to Make Charitable Giving a Key Part of Your Financial Strategy

Writing check for charitable donation as part of your financial strategy

From Wealth to Purpose

If you ask me, giving isn’t just good for the soul—it’s smart for your financial future. With December being National Giving Month, I wanted to take a few minutes to explain how charitable donations can play a pivotal role in a well-rounded financial strategy and why giving can be one of the smartest financial moves you’ll make yet this year.

In many of my videos on Everything Money, you know I’m big on educating my audience about the key considerations to make while investing in stocks, planning for retirement, or building a real estate portfolio. But what you may not know is that my approach isn’t just about making money—it’s about using it to make a difference while strengthening your financial legacy.

You see, financial success shouldn’t be measured solely by the size of your portfolio. True wealth comes from building a legacy that aligns with your values, and charitable giving is one of the most effective ways to achieve that.

Charitable Giving: A Cornerstone to a Smart Financial Strategy

Incorporating charitable giving into a financial plan isn’t just about altruism—it’s also a smart financial strategy. To me, giving isn’t just a moral decision—it’s a financial one. If done strategically, charitable giving can create long-term benefits for your financial health while making a meaningful difference in the world. Win, win!

End-of-year giving: While there are financial perks and tax benefits to charitable contributions, I never recommend doing it strictly for the tax benefits. If you’re giving $1 to save $0.45 in taxes, that doesn’t make financial sense. Give because it matters—not for a write-off. That said, donating before year-end can provide a tax deduction while supporting causes that matter.

Legacy building: Planned giving ensures that your wealth serves a purpose beyond personal needs. For me, wealth is about creating a ripple effect of positive change. Wealth created with purpose can also be shared with purpose.

My Personal Connection to Justice and Charitable Giving

I’ll admit, charitable giving wasn’t always on my radar. However, as I’ve built wealth, I’ve realized I’ll have more than I’ll ever need. Without children to inherit it, the question became, ‘What do I do with my excess money someday?’ Now, I’m focusing on causes I believe in—like children’s education, health, and rights for the misrepresented.

Among those causes, the Innocence Project is one that stands out to me as a beacon of justice. Let’s be honest, the government has immense power, and sometimes that power is misused. Innocent people lose decades of their lives while the real perpetrators go free. Supporting the Innocence Project means fighting for accountability and justice. The idea that someone could spend years in prison for a crime they didn’t commit is horrific. It’s a stark reminder of why we need organizations like the Innocence Project.

If you’re less familiar with this organization, here’s a brief overview:

Since its founding in 1992, the Innocence Project has helped exonerate 251 clients through DNA evidence, freeing individuals who collectively spent over 3,900 years wrongfully incarcerated. The organization’s work also exposes systemic vulnerabilities that disproportionately impact marginalized communities—58% of the Innocence Project’s exonerees are Black.

As an Iraqi immigrant and minority myself, I can’t help but feel a personal connection to the organization’s mission. I understand the struggles of being part of an underrepresented group. When you don’t feel like you’ve been given a voice, you understand the importance of standing up for others who can’t stand up for themselves. That’s the kind of legacy I want my financial success to support.

National Giving Month: A Perfect Time to Act

I encourage all investors to use National Giving Month as an opportunity to reflect on their values and integrate giving into their financial plans. Despite what you may think, anyone can make a difference, regardless of their financial situation. Wealth is not a precursor to giving. Even $10 can help fuel a movement.

Not sure where to start? Here’s what I recommend:

  • Set a “Giving Budget”: Allocate a percentage of your income or investment gains to charitable donations. Every little bit helps. It’s about building a habit of giving, no matter the amount.
  • Start small: Find causes that resonate with you, learn about their work, and start with modest donations.
  • Do your homework: Use tools like Charity Navigator to research organizations that align with your values and use funds effectively. Overhead is necessary, but make sure the majority of your contribution is going to the cause itself, not administrative costs.
  • Ask around: Seek recommendations from friends or trusted advisors. Our inner circles often share similar values, hence a potential compass towards causes that resonate with you.

Don’t let pride get in the way either. Start small if you need to. The key is to be intentional. Over time, giving becomes not just a part of your financial plan but a reflection of who you are.

Beyond Profits

Charitable giving is more than an act of kindness—it’s a critical component of a smart financial plan. By thinking beyond profits, investors can align their wealth with their values, create meaningful change, and secure their financial legacy. 

As the year winds down, I urge everyone to use National Month of Giving as an opportunity to reflect on the meaning of financial success. Through sharing my journey, I hope to inspire other investors to take action.

Money is a tool. The question isn’t just how to make it grow, but how to use it to make a difference. That’s the true measure of success.