Easter is one of my favorite holidays, perhaps even more than Christmas. The resurrection story brings me so much hope and refreshes my convictions each year. One such conviction is financial stewardship.

Matthew 6:24 tells us, “No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money.”

Later in the book of Matthew, The Parable of the Talents tells of a master who is leaving his house for a long time. He entrusts his property to three servants, according to the abilities of each. The first servant receives five talents, the second receives two talents, and the last receives one talent. (A talent is an ancient form of currency). When the master returns, he asks for an account of the property he had entrusted them. The first and second servants explain that they put their talents straight to work and doubled the value of what they were entrusted with, and so each is rewarded by his master. The last servant, having been afraid, buries his talent in the ground and returns the single talent to his master. The master chastises him, declaring the servant should have invested the talent with the bankers where at least it could have earned interest, rather than burying it. He then commands the single talent be given to someone who could turn it into abundance and casts the unprofitable servant out. Ouch!

As a financial advisor who encourages others to save and invest, I wrestled with Matthew 6:24 for years. What I’ve grown to learn though is that this verse speaks to the love of money, or greed. It is the Parable of the Talents that speaks to the management of money – financial stewardship. Consider both portions of scripture together and you can see that it is not how much money you have that matters; it is how you manage it.

Consider the act of giving. Contributing to a purpose greater than ourselves provides the ultimate form of fulfillment. Because we are all dealt different lots in life, the uniqueness of our financial situations should be accounted for in financial stewardship, including our abilities to give.

If you start with only a little and do not manage your resources wisely, then how can you ever be charitable? If you have debt, good financial stewardship may look like prioritizing paying off debt so that you can have the financial freedom to put future resources to work. It is difficult to be charitable if you are a slave to debt. Remember you can also be giving of your time!

And if you are wealthy, yet you hide your talents in a hole, then what can you say for how you handled the resources you were entrusted with? Having more money means there is more to be responsible over. Like the master who went away, it is okay to entrust someone with the management of your resources. Choose your servants wisely, however, so that your resources are put to work and not sitting idle. By entrusting the right professionals, strategic financial and tax planning could potentially enhance your charitable endeavors!

No matter your level of resources, if good financial stewardship is something you desire, working with a CERTIFIED FINANCIAL PLANNER™ professional to create a plan is a great place to start. To find a CFP® professional that offers services unique to your individual needs, you can visit letsmakeaplan.org.

Published in the Victoria Advocate

Hannah Gohmert, CFP® is the Chief Compliance Officer of KMH Wealth Management, LLC.

I always think of my parents when I think about charitable giving or serving for that matter. My parents were generous people that encouraged us to think in terms of becoming generous adults. “You will never miss the money that you give to the church,” Dad used to say. Not sure that is an original saying, but he said it to us kids and you know, I’ve never missed the money we have given to the church or to charity.

I have always admired and been amazed by the clients I have worked with over the years that prioritized their giving, not for tax reasons, but because they felt it was their obligation. Many never realizing any additional tax savings because the 10% of their gross income or more that they gave was not more than their Standard Deduction already allowed to taxpayers.

Speaking of the Standard Deduction, in 2021, that amount is $12,550 for single filers and $25,100 for married couples filing jointly. What that means is if your medical expenses, taxes, home mortgage interest, charitable deductions and a few other items exceed the number above, and you itemize them on Schedule A of your Form 1040, your taxes will be reduced. Important point to remember, it is not dollar for dollar. Even if you don’t itemize, you can still deduct up to $300 ($600 if you are married filing jointly) of direct cash gifts to public charities in addition to the Standard Deduction amount.

So, in addition to cash contributions, let’s review a couple of charitable giving options to maximize income tax deductions. Year-end is upon us and by the time this article is published, hopefully you have done your planning, but if not you will need to consider and implement some straight forward planning that can be done quickly.

Consider donating appreciated securities that have been held for more than one year, rather than cash. The market has done well and instead of selling appreciated securities to make cash contributions that generates a taxable gain, many charitable organizations accept donations of stock instead. You get a deduction for the full fair market value of the security and the charity sells the security and receives the full value at date of sale with no taxes paid on the gain.

For larger gifts, opening and funding a Donor Advised Fund (DAF) is appealing to many as it allows for a tax-deductible gift in the current year and also the ability to dole out those funds to charities over future years. The fund can be added to over time and is a good way to bring your children into charitable planning as you make decisions on gifts from your fund. There are several good options here. One you can look at as an example is Vanguard Charitable.

Give your CPAs and financial planners a call to discuss your options. Time to stop putting things off and do some charitable planning that works for you. Do something special this year and set the example of generosity for your family. So, good cheer to all! Have a Merry Christmas and a Happy and Prosperous Holiday Season and New Year!

Published in the Victoria Advocate

Lane Keller CPA/CFP® is a managing member of Keller & Associates CPAs, PLLC and KMH Wealth Management, LLC.