Episode•April 10, 2024•19 min

Making an Impact: Philanthropic Strategies for Every Wallet | Ep. 315

This week, we're diving into the often-overlooked world of philanthropy with a fellow UNCG alum, Dean Castaldo. Join us as Dean shares his extensive knowledge on the many ways we can support our favorite causes, from naming beneficiaries and directing stocks to establishing donor-advised funds and trusts. Whether you're just starting your financial journey or looking to leave a legacy, Dean's insights will illuminate a plethora of options for making impactful contributions. Get ready to discover how you can make a difference, not just now, but for generations to come. Tune in now to unlock the potential of your philanthropic spirit! About Our Guest Dean Castaldo, J.D. leads a dedicated team of fundraisers at the USNA Foundation, connecting with alumni and parents across the Southeast and Southern California to secure 6- and 7-figure philanthropic investments that enhance the midshipman experience. Prior to his role with the Foundation, Dean honed his development skills as Associate Director of Alumni Engagement at UNC-Greensboro, where he supported corporate partners, the military-veteran community, and young professionals. He has served in the development profession since late 2015 while bringing over 15 years of combined active and reserve experience leading teams of warfighters as a Marine Corps NCO and a current Naval Officer. Dean has extensive non-profit advisory experience serving on multiple boards, including as a current member of the UNCG Alumni Leadership Board and the Naval Sea Cadets Foundation Board of Directors. Connect with Dean LinkedIn: https://www.linkedin.com/in/deancastaldojr/ Connect with Tiffany Website: https://www.moneytalkwitht.com Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant YouTube: Money Talk With Tiff Pinterest: @moneytalkwitht TikTok: @moneytalkwitht Timestamps [00:00] Philanthropy is reachable for majority of people. [05:19] Designate beneficiaries flexibly with selection of percentage. [08:24] Transfer accounts tax free or tax deferred. [10:40] Utilize trust structures for financial and estate planning. [13:58] Invest $100 monthly into donor advised fund. [18:14] Gratitude for information and hope for day. Key Themes Understanding philanthropy. Options for philanthropic giving. Beneficiary designations for donations. Tax advantages of estate gifts. Using wills and trusts. Donor-advised funds explained. Gifting stocks to nonprofits. Additional Links & Resources Home Page - UNC Greensboro Habitat for Humanity Veterans Charity - Non...

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Key Takeaways

1
Philanthropy is accessible to everyone regardless of wealth level
Even young graduates can make meaningful contributions through flexible giving options
You don't need to be a high-net-worth individual to support causes effectively
Small monthly contributions to donor-advised funds can build significant impact over time
2
Beneficiary designations offer flexible, tax-advantaged giving
Designate nonprofits as beneficiaries on retirement accounts, brokerage accounts, or any financial account
Commit percentages rather than fixed amounts for flexibility throughout your lifetime
Easily changeable online in 3-5 minutes without legal fees
May provide estate tax advantages for higher net worth individuals
3
Donor-advised funds democratize family philanthropy
Can be established online in 7-10 minutes with low minimums (e.g., $100)
Allows family members to learn philanthropy by managing grants over generations
Simpler than family foundations with less IRS reporting burden
Enables strategic, planned giving rather than one-time donations
4
Gifting appreciated stock avoids capital gains taxes
Transfer shares directly to nonprofits instead of selling and incurring tax liability
Receive gift credit while avoiding capital gains taxes on appreciated assets
Can be designated for specific purposes like endowing scholarships

Intro

This episode explores accessible philanthropic strategies for individuals at any wealth level, featuring expert insights on planned giving, estate planning, and creating lasting impact through strategic donations.
Dean Castaldo, J.D. leads fundraising at the USNA Foundation, previously served as Associate Director of Alumni Engagement at UNC-Greensboro, and brings 15+ years of military leadership experience as a Marine Corps NCO and Naval Officer. He serves on the UNCG Alumni Leadership Board and Naval Sea Cadets Foundation Board.

– What is Philanthropy?

Philanthropy is a way for virtually everyone to find causes they're passionate about and support them financially, regardless of career stage or wealth level.

Philanthropy is a way that virtually everyone, regardless of where you are in your career or in your life, it's a way for you to find the cause that you are most passionate about and support it.
– Dean Castaldo

– Deferred/Planned Gifts via Beneficiary Designations

Designate nonprofits as beneficiaries on retirement accounts (401k, IRA), brokerage accounts, or any financial account. This allows you to pledge support without committing fixed amounts upfront.

Process is simple: log into your account, designate percentage to the organization's legal name with their tax ID, and submit. Takes 3-5 minutes and provides instant confirmation.

You're promising a percentage as opposed to committing $100,000 or $5 million... it gives you a lot of flexibility.
– Dean Castaldo

– Tax Advantages of Estate Gifts

Estate gifts to nonprofits may provide tax advantages, particularly for higher net worth estates. Transferring accounts to nonprofits can save on estate taxes that would otherwise apply to other heirs.

Always consult with estate attorneys and wealth managers, as tax implications vary by individual circumstances.

– Wills, Trusts, and Formal Estate Planning

Include specific organizations in your will or trust documents to ensure your wishes are carried out. Trusts aren't just for the wealthy—many middle-class families use them for financial planning.

Formal estate gifts often come with lifetime recognition benefits like donor walls, named scholarships, or facility naming opportunities.

– Donor-Advised Funds for Multi-Generational Impact

Establish donor-advised funds with low minimums (e.g., $100 at Fidelity) and budget monthly contributions. Children or grandchildren can eventually manage grants, teaching family philanthropy values.

You put 100 bucks in there and you could budget into your monthly bills... every year or maybe not every year, you can choose when you can send gifts from that donor advised fund.
– Dean Castaldo

– Gifting Appreciated Stock

Transfer appreciated stock directly to nonprofits instead of selling and paying capital gains taxes. You receive gift credit while avoiding tax liability on gains.

Can designate stock gifts for specific purposes like endowing scholarships through coordination with the organization's development team.

Resources

Topics

philanthropyestate planningbeneficiary designationsdonor-advised fundscharitable givingtax-advantaged givingplanned givingnonprofit donationsstock donationslegacy planning