For San Diego retirees, there are many ways to contribute to charitable causes and make a meaningful impact.

Whether you prefer to give during your lifetime, plan for contributions after you pass away, or volunteer with your newly found free time, there are numerous opportunities to enrich your retirement experience and benefit your community.

Giving During Retirement

Giving back to San Diego through various financial methods can offer both immediate and long-term benefits for you and our region. Diversifying the assets you donate is one of the most effective ways to maximize your philanthropy during retirement.

“Retirees have some control over where their income comes from, including pre-tax money, Roth IRAs and taxable income. This opens up a whole new set of opportunities for their charitable contributions,” shared Lorenzo Sanchez, CFP.

A partner and senior wealth advisor at Pathview Wealth Advisors, Sanchez helps San Diegans plan for all aspects of retirement, including charitable giving.

Couple at home looking over their finances

“After clients retire and are living off their savings – and maybe a limited withdrawal amount – making sure charitable expenses are done in an optimal manner – just like any other retirement expense – becomes even more important.” he said.

There are several ways you can make a financial impact – and earn substantial tax benefits – with your charitable giving during your golden years.

Cash Donations

Cash donations are the simplest and most direct way to support your favorite causes and charities. You can write a check, donate online, or set up automatic monthly contributions to charities that align with your values. This method offers immediate support to organizations and provides you with potential tax benefits.

Donating Appreciated Assets

Donating appreciated assets, such as stocks, mutual funds or real estate, is an effective way to support charitable organizations while minimizing or completely avoiding capital gains taxes. By giving these assets directly to a charity or donor-advised fund, you can donate the full market value without incurring taxes on the appreciation. This maximizes the impact of your gift and provides significant tax savings.

Donor-Advised Funds (DAFs)

A DAF is a charitable giving account that allows you to make tax-deductible donations and then recommend grants to your favorite charities over time. This flexibility lets you take an immediate tax deduction while deciding how to allocate your charitable contributions for the greatest impact. DAFs can be an excellent way to manage your philanthropic efforts strategically, especially in partnership with a community foundation.

Qualified Charitable Distributions (QCDs)

If you are aged 70½ or older, QCDs offer a tax-efficient way to donate to charities directly from your Individual Retirement Account (IRA). QCDs count toward your required minimum distributions (RMDs) but are not included in your taxable income. You can donate up to $100,000 annually through QCDs, making it a powerful tool for philanthropy. Although QCDs cannot be gifted to DAFs, they can support other types of funds and initiatives at community foundations that align with your giving interests.

Charitable Gift Annuities

A charitable gift annuity allows you to support a charity in exchange for a fixed income for life. You donate a sum of money or assets to the charity of your choosing or a DAF, and in return, the charity pays you (and possibly another beneficiary) a fixed annuity. This arrangement offers immediate tax benefits and a reliable income stream, making it an attractive option for retirees.

By exploring these methods of giving, you can enjoy the personal and financial rewards of philanthropy while making a meaningful difference in your community. Each approach provides unique benefits that may not be as accessible or beneficial to younger individuals, allowing you to find the best fit for your charitable goals in retirement.

A Legacy of Giving

Senior adult painting in his garden

Planning for charitable contributions after your passing ensures that your legacy of generosity continues to benefit you, your family and your community for generations.

“As part of your financial plan, your charitable expenses should continue for as long as you wish,” Sanchez shared.

Diane Johnson is a prime example. She saved throughout her successful legal career to pursue her passion for volunteerism in retirement.

“This enabled her to nurture her passion for volunteering at organizations that helped the most vulnerable in their time of need – whether they be a shut-in in need of a meal, an abandoned German Shepherd in need of a home or a child with a serious illness in need of a wish fulfilled,” said Mary Sutton, co-advisor of the Diane Johnson Fund at San Diego Foundation (SDF).

Johnson set up a legacy fund during her retirement because she wanted her charitable giving to leave a lasting impact on the region long after she was gone. Although she passed away in 2015, her legacy fund lives on and continues to pave the way for people to succeed in San Diego.

Here are some strategic ways to include philanthropy in your estate plan.

Bequests

Including charitable bequests in your will is a straightforward way to leave a legacy. You can designate specific amounts or assets to be donated to your chosen charities after your passing. This method ensures that your philanthropic goals are met and provides potential estate tax benefits.

Charitable Remainder Trusts (CRTs)

A charitable remainder trust (CRT) is an irrevocable trust that provides income to you or your beneficiaries for a specified period, with the remainder going to a designated charity. CRTs offer significant tax advantages, including income tax deductions, avoidance of capital gains taxes on donated assets, and potential estate tax benefits. This tool allows you to support your favorite causes and initiatives after providing for your loved ones.

Charitable Lead Trusts (CLTs)

A charitable lead trust (CLT) is the reverse of a CRT. It provides income to a charity for a specified period, after which the remaining assets are transferred to your beneficiaries. CLTs offer estate and gift tax benefits, making them an excellent way to reduce the tax burden on your heirs while supporting charitable causes.

Life Insurance Policies

Naming a charity or DAF as the beneficiary of your life insurance policy is a simple way to make a substantial future gift. You can either transfer ownership of the policy or designate the charity or DAF as a beneficiary. This method provides potential estate tax benefits and allows you to make a significant impact without affecting your current financial situation.

Incorporating charitable giving into your estate plan not only fulfills your philanthropic goals but also provides substantial tax benefits. These planned gifts create a lasting impact that reflects your values and supports the causes you (and your family) care about most.

Volunteerism

Group in a circle outside

Volunteering your time and skills is a powerful way to give back to San Diego during retirement.

Throughout his life, William “Peasy” Johnson dedicated himself to his profession and to his community. He worked at the U.S. Post Office for 25 years and volunteered helping blind San Diegans for 20 years at the Blind Community Center.

Peasy’s life experiences taught him to be assertive, ambitious, creative and caring. He valued the importance of working hard and giving back.

Even after he retired, Peasy wanted to continue helping the community in any way he could. He recognized what the combination of hard work and opportunity did for him as a youth, and he knew he wanted to do the same for other young San Diegans.

There are various opportunities for volunteerism in San Diego that can enrich your life and benefit those around you.

Volunteering Your Time

Volunteering your time is one of the most rewarding ways to give back to the community. Many San Diego organizations rely on volunteers to support their programs and services. Whether you’re interested in mentoring, tutoring, serving meals, or assisting with administrative tasks, there are countless opportunities to make a difference.

Skill-Based Volunteering

If you have professional skills or expertise, consider offering them to nonprofits in need. Skill-based volunteering allows you to use your talents to benefit organizations in areas such as marketing, accounting, legal services and more. This type of volunteering can be incredibly impactful and rewarding, providing valuable support to charities.

Board Membership

Joining the board of directors of a nonprofit organization is a significant way to contribute your time and expertise. As a board member, you can help guide the organization’s strategy, governance and fundraising efforts. This role requires a commitment of time and energy but can be immensely fulfilling as you help shape the future of the charity.

Community Involvement

Participating in community events and initiatives is another excellent way to give back. Many San Diego charities host fundraising events, awareness campaigns, and community service projects that rely on volunteer support. Getting involved in these activities allows you to meet like-minded individuals and strengthen your connection to the community.

Live Well San Diego has curated a list of national databases that can be searched for local volunteer opportunities, including:

Volunteering allows you to make a tangible difference in San Diego while experiencing the joy of helping others. By dedicating your time and expertise, you can create positive change and build lasting connections your community during retirement.

Learn More

Retirement offers a unique opportunity to give back to the community and create a lasting legacy.

Whether you choose to make financial contributions during your lifetime, plan for charitable gifts after you pass away, or volunteer your time, there are numerous ways to support the causes you care about.

San Diego offers many opportunities for retirees to get involved and make a meaningful difference. By exploring these ways to give, you can enrich your retirement experience and leave a positive impact on your community.

Explore Ways to Give