For those interested, one way to build this charitable muscle and lifestyle is to start a charitable trust (at least in the US). It's not just for the ultra wealthy. You can start any old investment account and commit to funding it regularly say $20/month or 1% of your salary to start. Then when you hit $5k or more you can transfer those funds to a trust you create with say Fidelity or Vanguard ($25k minimum). You can then disburse these funds from the trust to the charitable org of your choice.
The nice thing about this option is you can save now without having to decide where to give. You can take time to research and make an educated informed decision on where to give. You also get the dual tax benefit of not getting taxed on these capital gains and the deduction of a donation if you itemize.
It's very cool to see people giving critical thought on how they give. But sometimes it can be intimidating to start. Just starting with anything is better than nothing and you can build from there. You don't have to give 50% like this guy. Building it into your lifestyle and budgeting is a slow and gradual process.
I'm interested in this approach - is there any charge to create the trust? Also, I wish the minimum for Vanguard was lower - I already have an investment account with them, and this seems like a great way to get started.
Shouldn't be - I think it's just the same as most investment accounts in that there is a small management fee that takes a percentage cut. In this way Vanguard is the best as it has the lowest rates I know of for the casual investor, but the minimum is certainly high.
This is interesting. I created a scholarship that i direct for graduates of my high school and the way it works now is i cut a check to the school who cuts checks to the students. I'd rather have a trust i can write checks directly to the students from and more importantly i'd feel a lot more comfortable about doing a fund raiser or something to make the scholarships bigger (my ultimate goal is a full ride, might not get there alone)
However when I looked in to this it didn't seem so clear cut.
The nice thing about this option is you can save now without having to decide where to give. You can take time to research and make an educated informed decision on where to give. You also get the dual tax benefit of not getting taxed on these capital gains and the deduction of a donation if you itemize.
It's very cool to see people giving critical thought on how they give. But sometimes it can be intimidating to start. Just starting with anything is better than nothing and you can build from there. You don't have to give 50% like this guy. Building it into your lifestyle and budgeting is a slow and gradual process.