“But you were always a good man of business, Jacob,” faltered Scrooge, who now began to apply himself.
“Business!” cried the Ghost, wringing its hands again. “Mankind was my business. The common welfare was my business; charity, mercy, forbearance, benevolence, were all my business. The dealings of my trade were but a drop of water in the comprehensive ocean of my business!” (Charles Dickens)
Capital Loss vs. Charitable Giving
“Never risk more than you care to lose” is common advice in this business. Such reasoning can be equally applied to an asset class unavailable for purchase on Wall Street. It is the one Jacob Marley emphatically endorses. Charitable goods are individual contributions to the common good. A few forms of charitable giving include helping a stranger, contributing time to a worthy cause, sharing expert insight, and giving away cash to those in need. As such, this investment class is a divestiture class of good gifts.
What is the difference between a capital loss and voluntary loss of capital to charity? I have heard it put this way: “Losses are losses, but gifts are losses with a silver lining.” Both losses have defined amounts, but only one is 100% certain, and guaranteed to fill your emotional cup, and that is the latter.
Choosing Your Charitable Organization
According to the Charities Aid Foundation, America is home to the world’s most generous private givers. Americans donate over $200 billion to charity each year–more than 1 percent of our GDP. This generosity is consistent among all types of investors because the percentage holds strong across all income levels, races, religions, ethnicities, and education levels. Here are the findings for 2020.
Judiciousness in distributing to a charity is as personal as risk tolerance. Damon Davis favors giving to the local Food Bank and is encouraging others this year just as he has in years past. David Johnson is a generous soul that is not afraid to discuss who qualifies for his giving. “I believe in giving to charitable organizations, and market makers don’t qualify.” Choosing a charitable organization for your “no strings attached” contribution, can be more daunting than picking a good cryptocurrency. NGO’s are serious business and a new realm of inquiry for many who are growing wealth at Jade Bronco.
Owning Charitable Companies
We have seen and experienced the wealth that grows under the practiced hand of the skillful trader and investor. Therefore, we can assert that one can learn how best to optimize personal good will and the ability to give skillfully.
What if you could do both? What if you could give to charity and own companies that give to charity. Well, you can. Charitable investment funds and annuities have been around since the early nineties. Many Analysts insist on seeing corporate charitable contributions above a certain threshold as a part of their criteria for getting a strong buy rating. You can do so too. Here is a link to a list of the most charitable for-profit companies.
Change For The Better
Frank Priest once confided, “money changes peoples’ DNA.” Implicit in that statement is the sentiment that greed can make you do the wrong thing. The reverse also holds true. If you give some of your money away, that can also change your DNA. Only this time, it will change you for the better. Generosity is the antivenom of greed. As such, it can be suggested as a possible cure for irrational investing.
Of the great men I know, money is no obstacle. Because of their generosity of spirit, money is not hoarded, but directed. They are wise enough to bring in the wealth, and wise enough to choose appropriate charities. There is much thought in both, especially at this time of the year.