Doing charity is one of the ways to serve a community that has been blessed with adequate wealth. You are not only serving, but you save tax as well. The only way you can efficiently use your tax is the charity. Charity is not about quantity but the quality which comes from the heart. A wealthier person donating 5% of their income may be as equal as a person doing charity for 5 cents of a $1 salary. If everyone, including the more prosperous and poor, thinks in such a way to offer something, then technically, no one will be poor in this world.
#1 Tax savings
Materialistically, making charity, in other words, is taking the tax back and utilize in a smart, efficient way. Big earners have to pay a big tax every year, which goes unutilized if you do not make charitable donations. Making charity also means savings on your inheritance or estate taxes for your inheritors. Utilize your personal or business income taxes towards charity and still get a refund and many more opportunities for tax savings through charity.
#2 Everyone needs help
Whether you are deprived or wealthy, everyone needs hands in their lifetime at many levels beginning with our birth. We depend on our parents, relatives, friends, and financial institutions to learn, get an education, or grow a business. Many people do not have job application form fees or travel costs for an interview, but that job is just waiting for them to appear for an interview. A jobless person needs help getting a job, while a businessman needs help becoming a giant entrepreneur, and so on.
#3 Your obligation to the community
Charity is the easiest for the wealthier person, and you may not realize how big a difference it makes in someone's life. For helping your family, relatives, the community at large, and others, in other words, serving a portion of the purpose of life in this world. Doing Charity is one of the best ways to show kindness, humbleness, and softness of heart. Everyone knows charity is undoubtedly a good thing, and many do make a difference in a life of disparate, needy, sick, orphans, and poor people. Still, we have growing poverty challenges due to somewhere room to improve. Many of our community members live without basic needs such as clean water, food, and shelter. Many do not have guardians to look after their childhood, medical, and education. So if we may think, we could be able to make a difference.
#4 One Life, One Chance
Many have been born and passed away, but the only thing that remains on the earth is how you made a difference in someone's life. Many of us aim to gain better educations, have better jobs, have reasonable homes, and so on. However, we also know that many of us have goals of pleasing someone for a penny to make the food of a day or two. So let us make a difference.
#5 Make estate planning stronger
One of the biggest misconceptions is that making charity can weaken you, but in the estate planning concept, it makes you stronger. Having good wealth means you have lots of opportunities, but some wealthier people keep the wealth for themselves, and in the end, wealth becomes the estate planning burden due to a lack of strategy. Utilizing wealth for lifetime charitable donations and afterlife testamentary bequests are among the strongest estate planning strategies no attorneys and tax experts can deny. A wealthier person or businessman not applying charity planning may end up giving away wealth to the government under Escheat or Unclaimed estates.