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Is it possible to make money by giving it away?

Is it possible to make money by giving it away?

February 14, 2023

Making money by giving it to charity may seem counterintuitive, but it is actually possible through a practice known as philanthropic investing. Philanthropic investing involves using your financial resources to support causes and organizations that you are passionate about, while also generating a financial return.

Here are a few ways you can make money by giving it to a charity:

  1. Socially Responsible Investing: This is a type of investing that focuses on investing in companies that have a positive impact on society and the environment. By investing in these companies, you can generate a return while also supporting causes that you care about.

  2. Donor-Advised Funds (DAFs): A DAF is a tax-efficient way to give money to charity. You can make a contribution to a DAF, receive a tax deduction, and then advise the fund on how to distribute the money to charities of your choice. Some DAFs also offer investment options, allowing you to grow your charitable giving over time.

  3. Charitable Remainder Trusts (CRTs): A CRT is a type of trust that allows you to donate assets to a charity while retaining the right to receive income from the assets for a specified period of time. At the end of the specified period, the assets are transferred to the charity. This type of giving allows you to support a charity and receive income from the assets, making it a win-win situation.

In conclusion, making money by giving it to a charity is possible through socially responsible investing, donor-advised funds, and charitable remainder trusts. Philanthropic investing allows you to align your financial resources with your values and make a difference in the world while also generating a return on your investment.