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[Music] chris we've got a question from a youtuber randall says uh this is the first year i'm in a position to give generously what do i need to consider when it comes to giving to an organization i've heard about a maximum for a gift tax does that apply to all giving yeah well first of all first and foremost randall congratulations on putting yourself in a position to be able to be a blessing because giving is a two-way blessing it blesses the the place that you're giving to the cause you're supporting but it also gives you a blessing and so it is without a shadow of a doubt the most fun you can have with money yeah it is and you're gonna you know we always teach us three things to do with money uh you need to enjoy it meaning lifestyle most people don't struggle with that one you need to give it and you need to save and invest it so that you can do more of the giving and the enjoying that's right but you will find the further you get in your financial journey the further down into your everyday millionaire journey that you get that the more joy that you do get more joy from properly done giving now improperly done giving would be giving to something that's distant and you have no emotional connection to you don't get the the givers high but if you you know you got a single mom sitting next to it to you in church and you reach over and pay her rent for half a year because she lost her job for covid that's a giving that connects blesses her blesses you that kind of a thing now the gift tax only applies if you're not giving to a non-profit now a non-profit would be your church a ministry something in the area that's a 501c3 okay and so if it's not a if it's a 501c3 there's no limit on how much you can give there's a limit on how much you can take as a tax deduction depending on your income and your accountant can help you with that formula but the 501c3 is 100 deductible if you're giving to an individual like you're just going to give your brother some money or something like that then you do have a fifteen thousand dollar gift tax limitation this year and you wanna be really careful with going over that there's some techniques you can use to go over that if you want to give to individuals but if you go over that and don't use some kind of a technique everything over that's going to be taxed upward of 50 percent so the gift tax is horrendous do not do not give away a hundred thousand dollars just act like to your to your mother-in-law and just act like that's okay you're gonna wish you had never met your mother-in-law when the tax bill comes so uh you know you gotta do that so here's one technique if you're married and you're gonna give some money to your kids who are married your son and daughter-in-law okay then you can give him 15 and her 15. your wife can give him 15 in her 15. now we got four fifteen thousand dollar checks or sixty thousand transferred that's but i write four separate checks and make sure you've got a real clean paper trail that would all qualify but if you're going to go over that over 60 in that scenario you're going to have to figure out some other techniques and you would check out what's called the unified estate tax credit where you can get some advice from your tax account and get this going but the bottom line is if you're giving to a ministry you just don't have to worry about it and you're through a ministry or something like that there's a lot of ways to do this and congratulations on joining the big boy club the big girl club because when you start giving that's when you're officially an adult dave i've never heard you use the term the giving high but there is something about that i tell you when you step into a situation anonymously or or regardless uh it does do something to your spirit it really does it it it increases everything you're just excited well i'm getting old and i've got a lot of famous friends now and one of them is named santa claus and there's a reason santa claus is jolly yeah he gets to give to kids all the time yeah and he's you know he's always laughing you know he's always grinning and you know you never see people that are generous people with a scowl that's not a generous person they don't give money you know think about the if you think of the face of a miser scrooge scrooge yeah you think of a scowl yeah but when you think of somebody giving you see you immediately see this great big smile with all those teeth sticking out and because that's that's a giving a generous person you can see it on their countenance you can see it on their face you can see it in the way they walk when you start to give i'm so excited for you randall because you're going to discover a whole new segment of life when you become outrageously and crazy generous uh because when you start to do this it affects your personality and here's the thing generous people are highly attractive these are attractive individuals you're going to find out you get promotions at work you're going to find out that people want to hire you for projects you're going to be asked to join the club that you never thought you know because all of a sudden you're just a likable dude you know because it's not because they want your money no no it's something about you internally you because generosity is not an act it's a character quality integrity is not an act it's a character quality and what you're doing here is you're developing this character quality with the act of physical literal monetary generosity it really is and i want to remind everybody giving is not just about money you've got an opportunity to be able to give with your time as well as your talent and so that giving aspect is money time talent look for opportunities or causes that you believe in and engage with them uh it is amazing what happens and i think that's one of the ways we can heal this nation is to get our mindset shifted on being able to give back and engage with people yeah it's um that there is something that happens in the human spirit when you do this so you know if you're going to do over 15 000 you need to investigate the tax issues and if you're going to be giving to a ministry or a non-profit if you're giving the red cross that's a non-profit for hurricane relief if you're giving to uh the homeless shelter it's usually going to be a non-profit in your city okay or if you're giving to a ministry that's an extension of your church and you're giving to a missionary family through the church that kind of a thing or giving to a missionary project where a house is being built in a in a uh in a developing country or something for a family or they're building a schoolhouse you're you know you're directing it through there that's all 100 deductible you don't have to worry about it i remember you saying talking years ago when i first started you said you know you get all kinds of people coming at you uh all kinds of charities and things of that nature but you said you and sharon will sit down and talk about what causes you're going to support and you make a list of those and and you you lavishly support that list and i i really like that because you're being as intentional with your giving as you are with your budgeting yeah and then when someone's mad because i say no that's okay right i'm okay with that yeah because it's not your money you don't get to decide you don't have a vote today we don't do it with sharon and i today we do it through the ramsey family foundation that my daughter runs right and so actually i just got an email a few minutes ago she's setting up the annual meeting where we will go through and establish the list this year and uh and it's not a thing where you're from the outside you can you know do a grant entry to the ramsey family foundation it's just our methodology of pooling the cash and then 100 of the ministries and things that we choose are something that we somehow one of us ramsey kids ramsey in-law kids me sharon are connected to and sometimes it's something we've met this year right but sometimes it's one we've supported for 25 years you know and we just have continued to do that so again it's a small list but then that way we're able to keep the gifts where they're meaningful yeah uh in other words we're not doing 500 gifts of 500 that would drive you bananas at tax time you know plus you get everybody coming at you then yeah and you know you're like because once you do that once it's like that guy's over there that guy's over there that guy's over there that guy's over there and all of a sudden you're on six you know six charity boards and and you're on the board just because they want your money and all that kind of stuff so you get you get off into the dark side of this thing really quickly if you're not careful so keep it to where it's manageable where you enjoy it and go ahead and vet the organization if you're going to give them a lot what you call a lot of money then spend a lot of time on it go hey this co this place you know like i'll tell you an example if they borrow money well we can't give to them in our case because that would be a guideline if you're a ramsey duh we don't borrow money so why am i going to give money to them so they can give money the bank that would be dumb right be inconsistent with who i am as a person right or our family is his people so that would be an example at our house maybe maybe you got something at your house that you say you know if they do x or do why we're not gonna do this so you need to investigate make sure they're running the thing well make sure it's managed well make sure the operating principles are right so hey roland randall i'm proud of you man uh you just you're entering a whole another phase hold another gear baby brother go you're gonna have fun generosity is the best part of the whole money picture this is the dave ramsey show