A local group of female financial planners, the Goddesses of Financial Planning, announced a $25,000 donation to the Center for Financial Planning initiative in honor of the group’s 25th anniversary. The funding will support the initiative’s work to promote women and diversity in the financial planning industry.

Founded in 1995, the Goddesses of Financial Planning is a group of more than a dozen women financial advisory firm owners in Minnesota, including Lauri Salverda of Castle Rock. The group meets regularly to share strategic advice and best practices to support each other in the financial planning industry. In addition to the Goddesses of Financial Planning, each member also belongs to the Financial Planning Association of Minnesota (FPA MN), a nonprofit organization of more than 900 financial planning professionals.

“Finding true community in our industry—both through the Goddesses of Financial Planning and the FPA MN—has been invaluable as my business evolves,” said Lauri. “With our donation to the Center for Financial Planning, our group hopes we can help aspiring planners find the same support as they begin their careers.”

Approximately 23% of certified financial planners in the U.S. are women and less than 3.5% are black or Latino. The Certified Financial Planner Board of Standards (CFP Board)’s Center for Financial Planning initiative is working to attract, onboard and train women and people from diverse communities to become the next generation of financial planners.

In times like these, people tend to wonder, “What would happen if I were to pass away?” “Will my family, my pets and my possessions be taken care of in the way that I want?” These are questions that need to be considered carefully so that children are cared for thoughtfully, your pets don’t end up at The Humane Society, and treasured possessions aren’t sold en masse in a garage sale. With the impacts of coronavirus, state planning attorneys are busier than ever, trying to get estate plans together while loved ones are isolated in ICU units.

No matter how good the attorneys are, when things are rushed and a loved one cannot give their input, mistakes are made. I recently heard a probate judge speak to errors in documents she has recently come across. One that stuck with me was a widow who died of the coronavirus. Her will defined her survivors as her 4 children and her husband’s 2 children as “my children.” Her will stated that half of her estate be given to “my children” and the other half be given to her husband’s children. I am not sure she meant to split half of her estate among all 6 children and the other half between just her husband’s 2 children—however, that was how the will was drafted.

This is a great time to talk through what you would like to see happen when you pass and choose who is the most appropriate to handle your estate. If there are younger children or a large estate, perhaps it is appropriate to have trusts set up. Who would you like to handle your household finances should you be unable to pay bills? Who do you want to make end of life health care choices for you, and will they be capable of making the choices you desire?

The next step is to take the time to have the documents drafted by a qualified Minnesota estate planning attorney. They will know how to incorporate Minnesota law into your documents to make sure your wishes will be carried out. If you change states, make sure that you have an attorney in your new state check through the documents to determine is your will is valid in your new home state. You should at the minimum have a will, health care directive, and a durable power of attorney for finance.
Your estate planning documents should be reviewed every 3 to 4 years to determine if goals have changed. Children grow up, friends change, wishes change, and relationships evolve. Make sure your documents stay current with your life.

We have several helpful tips on our resources page to assist you in making sure you take control over your end of life and make it easier for loved ones to understand what your wishes are and make it easier to carry out your wishes. Visit our resources page to get your copy of our Personal & Financial Inventory and What to Do When a Loved One Dies.

Thanks to review specialist Expertise for ranking Castle Rock as one of the Best Financial Advisors in St. Paul for the second year in a row! Expertise reviewed more than 80 financial advisors serving the St. Paul area. Castle Rock is thrilled to have made the shortlist of the Top 16 Financial Advisors in St. Paul! Thanks to the team at Expertise for their research, focus on quality, and commitment to ensuring all consumers can make confident decisions in the experts they select.

Making an investment in a charity or nonprofit, no matter the size, can feel daunting. There are so many organizations doing worthy work—how can you know where your donation will have the most impact? On top of that, nonprofits and charities occasionally run into the same issues as any other sector—mismanagement, fraud, and poor judgement. How can you be sure your dollars are doing what you intend?

Luckily, the growth of the digital age means a huge amount of information on charities and nonprofits is available online. With a few common sense guidelines and a few technical tools, you can do your due diligence easily and quickly.

Before we jump in, let’s take a minute to define some of the most common types of nonprofits and see how they relate to each other.

Nonprofit: A blanket term, “nonprofit” is a type of corporate designation, which indicates that the corporation’s net profit won’t go to benefit an individual, but will benefit the organization as a whole. This blanket covers dozens of organization types.

Charity: Charities are nonprofits whose purpose benefits the general public. So, not all nonprofits are charities, but all charities are nonprofits. Some people use the term “charitable organization” or “charitable nonprofit”—they’re all interchangeable with charity. These organizations tend to rely heavily on individual gifts to operate.

Foundation: A type of nonprofit corporation that makes grants to other organizations, institutions, or individuals for charitable purposes. While many do accept individual gifts, more often they have a large endowment that provides the bulk of their funds.

Now that who and what we’re talking about is a bit clearer, here are three easy tips to make the most of your charitable donations.

KNOW WHAT TO ASK

When you’re thinking about donating to a charity, there’s no one right answer. But you can prepare to do some thinking about how the charity meets your goals by keeping in mind a few key questions.

TRANSPARENCY: Is the organization open about its finances and financial health, with easy access to annual reports, statements and forms? Look for a copy of the organization’s annual report and/or 990 on its website. Check out the information they’ve chosen to disclose on Candid or Charity Navigator. Call their offices and ask for a copy of their audit or financial review. A nonprofit’s practices and willingness to share information about their finances will tell you just as much, if not more, than the actual content. It should never be hard to get a nonprofit’s basic financials. Be wary of any organization that hesitates to share them.

MISSION FIT: Does the charity on programs that fulfill the work you care about? This one is highly subjective, but arguably the most important—does the charity’s work matter to you? Annual reports, blog posts, and communications can tell you what kind of programming nonprofits are doing and how it relates to your passions.

TYPE OF NONPROFIT: Are donations to the organization tax-deductible? Not all types of nonprofits qualify for the tax-deduction status. You can check the Internal Revenue Service to find out. Generally, 501c3 donations will be tax deductible.

IN CASE OF EMERGENCY, LOOK BEFORE LEAPING

It’s tempting when there’s an emergency to donate to the first charitable organization that contacts you.  It is more important to give money where needed than to who asks first.

If you are donating in an emergency, the Federal Trade Commission has a handy checklist that will help you avoid scams as you’re searching on the internet, responding to phone solicitations, or following up on a friend’s charity recommendation.

CHECK THEIR ACCREDITATIONS

Websites like Guidestar by Candid invite nonprofits to increase their transparency through self-reporting. Check if your charitable nonprofit has a seal of transparency, or other similar accreditation.

Here in Minnesota, charitable nonprofits can undergo an even more in-depth self-reporting process with the Charities Review Council. Nonprofits can elect to start the process by reporting on more than 90 benchmarks that involve best practices and policies around governance, fundraising, financials, and more. Charities Review Council then reviews the information to ensure the organization adheres to best practices for the nonprofit sector. The Charities Review Council website lists organizations that have successfully completed the process, undergone review, and received accreditation.

Being confident in your personal philanthropy doesn’t have to be complicated. By keeping these resources handy, you can start growing your impact—whether you’ve got a nonprofit already in mind, or you’re reacting to a disaster. Thanks to the wealth of resources online, it’s easier than ever to start investing in changing the world.