Financial Resolutions to Consider for 2023

Contributed by: Kelsey Arvai, MBA

As the year comes to a close, it is time to start thinking about the New Year and starting it off on the right foot. What better way to accomplish this than by improving your financial health in 2023? January is Financial Wellness Month and Wealth Mentality Month – which serves as a reminder to get our finances in order and plan out our financial strategies. It is also the perfect opportunity to check in with your Financial Advisor to ensure you are financially prepared both in the short and long term.

While planning your financial resolutions, remember to be specific about what you want and why. The key to success is being clear about your priorities and choosing a particular goal. Make sure your goals are attainable, write them down, and post them somewhere where you will be reminded of them often. You can ensure accountability by creating calendar reminders to check in on your goals throughout the year.  

For additional resources on Financial Planning tips going into the New Year, check out Sandy Adams' blog from last year. I have also provided some additional ideas below from a blog I wrote last year:  

Automate Savings & Debt Reduction

Establishing and maintaining a positive cash flow is a top-tier priority for your financial health. Automation is key to efficiency and effectiveness while working towards your financial goals. Prioritizing your savings contribution through automation helps hedge against the temptation to spend the funds elsewhere. Utilizing automatic payments for your credit card could help your credit score if the payment happens before your due date. After establishing an emergency fund through your automated savings, you might consider directing excess cash to your retirement and health savings plans.

Max Out Your 401(k) & Health Savings Account (HSA)

The beginning of the year is a great time to review your 401(k) and HSA contributions to ensure that you are maximizing your benefits and taking advantage of increased deferral limits for 2023. 401(k), 403(b), and most 457 plan limits are now up to $22,500 for elective employee deferral. The catch-up contribution limit for employees aged 50 allows for an additional savings of $7,500. Similarly, HSA contribution limits are up to $3,850 for individuals and $7,750 for family coverage, with an additional $1,000 for employees 55 for older.

It is estimated that couples retiring today will face $200,000-$300,000 of out-of-pocket medical expenses over their retirement years. Since HSAs are not "use-it-or-lose-it" accounts, and they can be spent on any expense without penalty after 65, it is advantageous to fully fund these accounts every year.

Plan for Charitable Giving

Most people wait until December to give, but we recommend not being in such a rush that you wait until the end-of-the-year deadline and lose sight of your charitable goal. The beginning of the year is a great time to develop a plan for your year ahead. Consider reading the following blog posts to help you get started by picking a charity that is fulfilling for you.

How to Pick a Charity…During a Pandemic Part 1: Important Documents

How to Pick a Charity…During a Pandemic Part 2: Commitment to the Mission

How to Pick a Charity…During a Pandemic Part 3: Resources

Invest in Your Emotional and Physical Well-Being

As you take stock of your financial health this year, carving out time for your physical health is equally paramount. There is a connection between health and wealth; each should be analyzed and reviewed professionally, at least annually.

Reach Out to Your Financial Advisor 

Working with your advisor, at least annually, can provide support to keep you on track while determining and working towards financial goals.

On behalf of all of us at The Center, we wish you a happy and healthy 2023!

Kelsey Arvai, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of the Kelsey Arvai, MBA and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

Giving Tuesday: What It Is and Why It Matters

Contributed by: Kelsey Arvai, MBA

Every act of generosity counts, and everyone has something to contribute toward making the world a better place. GivingTuesday was created in 2012 with one mission; to start a day encouraging people to do good. Since then, the movement is now global, inspiring hundreds of millions of people to give, collaborate, and celebrate generosity. 

The biggest celebration of generosity, GivingTuesday, is celebrated annually on November 29th. We welcome you to join the movement this GivingTuesday, every Tuesday, or every day - whether it's time, a donation, or the power of your voice in your local community. Check out this video on Three Tax-Savvy Charitable Giving Strategies to learn more.

The Center participates in giving year-round. The Center's Charitable Committee facilitates this framework for giving year-round. Our mission is to contribute time and donations to the following three areas – Financial Literacy, Community Needs (Metro Detroit), and Staff Involvement. 

Below are some of the philanthropic works we have done or plan to do this year. Additionally, The Center offers eligible employees up to two days off with pay per year for engaging in organized volunteer community projects and facilitating involvement in community activities. The Center also encourages employees to make gifts to charities of their choice. Each employee of The Center can request The Center to match their donation up to $100 annually. You can visit Giving Tuesday’s website to learn more about how you can give time, gratitude, or support to positively impact your community and create a better tomorrow.  

Upcoming Events

• Brilliant Detroit – Tuesday, November 1st through TOMORROW, November 30th

• The Charitable Committee is working with BrilliantDetroit to host a toy drive this holiday season! To ensure the success of this drive, we’re doubling down on our efforts. If you donate a toy in the next 48hrs (today, 11/29 or tomorrow 11/30) The Center will make a financial match to your donation! See more details HERE!

• BrilliantDetroit is a nonprofit dedicated to building kid success stories for Detroit families and providing proven, year-round educational programming for students in high-need neighborhoods.

• Baldwin Society – Friday, December 9th

• Center Team Members will help to assemble Holiday Hope Care Packages for low-income seniors.

Past Events

• Gleaners Mobile Grocery - March

  • Jeanette LoPiccolo, Mallory Hunt, Logan Dimitrie, and Tim Wyman volunteered with Gleaners Mobile Grocery to help local seniors in our community.

• Battle of the Brackets – A Center Spinoff Competition - March

  • To celebrate the National Basketball Tournament this year, we set aside our favorite teams and adopted asset classes instead. You may be thinking – that sounds kooky! It is a bit. Our celebration is a mash up of education, some charitable giving, and a bit of friendly competition.

  • Here’s how it works: Our investment portfolios contain mutual funds and ETFs from various asset classes such as U.S. Large Cap Stocks and U.S. Municipal Bonds. The asset classes are our basketball teams. Nick Boguth, our trusted portfolio manager, highlighted 28 different assets classes, then each was selected by a team member and entered into our brackets. The top four winners will receive a donation to their favorite nonprofit organization.

  • To kick off our competition, our amazing team members, Nick Boguth and Jaclyn Jackson led a presentation explaining which asset classes hold the largest concentration of investment dollars and how The Center’s investment team builds client portfolios. Each team member then selected their best guess to “win”. It was a volatile few weeks! Our lucky winners included Sarah McDonell (Real Estate), Matt Chope (Global Macro), Emily Moore (Municipal Bonds), and Raya Chope (U.S. Momentum Stocks). Center for Financial Planning is donating $1,000 total to help support 4 nonprofits of their choosing. Go team!

• Greening of Detroit - April

  • Jeanette LoPiccolo, Gerri Harmer, Logan Dimitrie, and Bob Ingram participated in a tree planting event with Greening of Detroit.

•  Michigan Council of Economic Education - April

  • The Center is delighted to co-sponsor the Michigan Council on Economic Education’s 2022 Personal Finance Challenge as it highlights the importance of making smart personal financial choices and the career opportunities in the financial planning industry.

• Money Smart Week is a national campaign by the Federal Reserve Bank to encourage good financial decision making by individuals and communities through free online education. To show our support for the Money Smart Week campaign, Center for Financial Planning Inc. is excited to co-sponsor the Michigan Council on Economic Education’s 2022 Personal Finance Challenge. High school students from all over the state of Michigan are invited to compete on April 29th. Teams of 3-4 students review a personal finance case study, then provide a presentation of their financial planning advice. The competition occurs before team of judges in-person at the Macomb Intermediate School District on April 29th. The winning team receives a $250 prize and will advance to a national competition.

• Miles for Money – September

  • Center Team Members logged their miles so that a nonprofit of their choice would receive money; a healthy WIN-WIN. For each one mile walked, biked, ran, jogged, etc. The Center donated $2 up to $100 or 50 miles for the month of September.

• Humble Design – October

• Center Team Members work with Humble Design to impact the lives of individuals, families, or veterans emerging from homelessness. Humble Design works to change lives and communities by custom designing and fully furnishing home interior.

Kelsey Arvai, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Kelsey Arvai, MBA and not necessarily those of Raymond James.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Three Tax-Savvy Charitable Giving Strategies

Contributed by: Lauren Adams, CFA®, CFP®

Lauren Adams, CFA®, CFP®, is a Partner, CERTIFIED FINANCIAL PLANNER™ professional, and Director of Operations at Center for Financial Planning, Inc.® She works with clients and their families to achieve their financial planning goals.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Lauren Adams, CFA®, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

New Guidelines May Help Retirees Retain More Savings

Contributed by: Josh Bitel, CFP®

In late 2022, the treasury department quietly updated life expectancy tables, reflecting that Americans are living longer and should have a longer time horizon for full distribution of retirement accounts.

When retirement accounts came into law via the Employee Retirement Income Security Act of 1974, required minimum distributions (RMDs) were established. This is an amount mandated by the IRS that individuals must take out of their retirement account each year (for those aged 72 and above) to avoid paying a stiff penalty. Two components make up the size of the RMD – the account holder's age and the account value. Generally speaking, the older an account holder is, the larger their distribution must be in relation to their account size (for example – assuming a $1,000,000 account, someone 72 years of age must distribute $36,496 by year-end, while an 85-year-old must distribute $62,500). These figures are gathered by taking your account balance and dividing it by your life expectancy factor, as dictated by the IRS (table shown at the end of this blog).

New RMD tables now reflect longer life expectancies, which means a reduction in yearly required distributions. So if you're someone who only takes out the minimum distribution every year, in theory, you can retain more of your savings in tax-advantaged accounts.

Of course, satisfying annual RMDs doesn't always mean taking your distributions and putting them into your bank account for spending. There are strategies available to reinvest these funds, avoid taxes by sending them to charities, and fund college savings plans, among other things to help you achieve your financial goals.

RMDs are truly in place so that account owners aren't able to defer their taxes indefinitely. Like anything else in the world of finance, it's best to fully understand the rules before making decisions. For this reason, you may be best suited to consult with a financial advisor to avoid any pitfalls.

Josh Bitel, CFP® is a CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® He conducts financial planning analysis for clients and has a special interest in retirement income analysis.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Josh Bitel, CFP® and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. Examples used are for illustrative purposes only.

Battle of the Brackets…Portfolio Management Edition: A Center Spin-Off Competition

Contributed by: Nicholas Boguth, CFA®

I believe certain things make our team outstanding here at The Center, and a few of them were in the spotlight this past month amid the March College Basketball Tournament:

• We constantly practice our company values.

• We have a heavy focus on charitable giving.

• And ultimately, we are just a cool place to work.

In the spirit of education, teamwork, and some friendly competition, we ran a bracket competition with an investment focus (we did a normal bracket game too, but mine was busted the first day, so there is no need to talk about that). Every team member chose an asset class to represent their “team” in the tourney. The winner of each round is the asset class that outperformed over the week, and we are repeating for five weeks until we have our champion.

Some team members chose more stable asset classes like short-term U.S Treasuries or investment-grade bonds, while some chose more volatile options like Emerging Market stocks or commodities. Overall, it is fun for the entire team to collaborate and for all of us (not just those in investment roles) to watch how different asset classes move with economic news*.

*We all know there is no shortage of economic news lately from the U.S. and overseas. Markets have been volatile, and times like these stress the importance of having a plan in place. As always, we are here to help answer any questions you may have about your plan. One small but powerful tool in investment management that we have taken advantage of is tax-loss harvesting during volatile markets. Read more about that here.

The cherry on top of this competition is that we are playing for some of our favorite local charities. The Center’s Charitable Committee donated $1,000 to the winning four team members’ charities of choice. Check out the results from last year, as we ran the same competition using individual stocks instead of asset classes. We will continue to find new ways to collaborate, learn, and partner with charities here at The Center. We hope you follow our blog as we update along the way!

Nicholas Boguth, CFA® is a Portfolio Manager at Center for Financial Planning, Inc.® He performs investment research and assists with the management of client portfolios.

Any opinions are those of Nicholas Boguth, CFA® and not necessarily those of Raymond James. Every Investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment, Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Tips to Help You Achieve Your Financial Goals

Contributed by: Kelsey Arvai, MBA

We hope your 2022 is off to a great start! As we all know, the New Year is an opportune time to reset and reevaluate your goals. With this in mind, we have come up with some simple yet effective strategies to position yourself for a prosperous year ahead.

Automate Savings and Debt Reduction

Establishing and maintaining a positive cash flow is a top-tier priority for your financial health. Automation is key to being efficient and effective while working toward your financial goals. Prioritizing your savings contribution through automation helps hedge against the temptation to spend the funds elsewhere. Additionally, utilizing automatic payments for your credit card could help your credit score if the time the payment happens is before your due date. After establishing an emergency fund through your automated savings, you might consider directing excess cash to your retirement and health savings plans.

Max Out Your 401(k) and Health Savings Account (HSA)

The beginning of the year is a great time to review your 401(k) and HSA contributions. In doing so, you can ensure that you are maximizing your benefits and taking advantage of increased deferral limits for 2022. 401(k), 403(b), and most 457 plan contribution limits have been bumped up to $20,500 for elective employee deferral.

HSA contribution limits have also been increased to a maximum of $3,650 for individuals and $7,300 for family coverage. It is estimated that couples retiring today will face $200,000-$300,000 of out-of-pocket medical expenses over the course of their retirement years. HSA balances can build and grow over time, and these accounts can be used to offset healthcare costs in retirement.

Plan for Charitable Giving

The beginning of the year is also a great time to determine your charitable goals and budget for the year ahead. We have written extensively on how to best pick a charity, so if you are unsure of which causes or organizations you would like to support, these blogs may be helpful!

How to Pick a Charity…During a Pandemic Part 1: Important Documents

How to Pick a Charity…During a Pandemic Part 2: Commitment to the Mission

How to Pick a Charity…During a Pandemic Part 3: Resources

Invest in Your Emotional and Physical Well-Being

As you take stock of your financial health this year, carving out time for your physical health is equally paramount. There is a connection between health and wealth, and each should be reviewed by a professional, at least annually.

Reach Out to Your Financial Advisor 

Working with your advisor on an ongoing basis can provide you support to keep you on track while you are determining and working towards financial goals. If you ever have any questions, please reach out to us. We are always happy to help!

Kelsey Arvai, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Kelsey Arvai, MBA and not necessarily those of Raymond James.

How to Pick a Charity…During a Pandemic Part 3: Resources

While vetting a charity can be challenging in any environment, vetting a charity without interacting in person can be especially challenging. In this three-part blog series, I hope to share a few tips to help you pick and support amazing charities from the comfort of your home. 

Participate in The Center's Annual Toys for Tots Drive! Donate by December 17th.

Learn how The Center gives back throughout the year. 

Contributed by: Jaclyn Jackson, CAP®

Last time, we learned how to determine whether a nonprofit stuck to its mission with program indicators. However, what if you are pressed for time or lack the CPA relationships to help you through financial analysis? Well, you're in luck because there is help readily available at your fingertips, and I am going to show you where to look online. 

Helpful Vetting Resources

• GuideStar provides information on a charity's income, spending, mission, and executive salaries. They hold records for 1.8 million nonprofits registered with the Internal Revenue Service. Free parts of the website provide access to each organization's Form 990, the primary IRS filing document for nonprofits. Premium services offer more financial analysis.

• BBB Wise Giving Alliance produces reports about national charities, evaluating them against comprehensive Standards for Charity Accountability, and publishes a magazine, the Wise Giving Guide, three times a year.

• Charity Navigator applies analysis to each of its charities to come up with its star ratings (with four stars as the highest rank). The site focuses on financial health, accountability, and transparency.

• Charity Watch rates 600 charities with a grading system from A to F — and takes a watchdog approach towards exposing nonprofit abuses.

Pro Tip: If you decide to use a vetting site of your choice, look for sites that don't charge charities to be reviewed. his helps mitigate biased evaluation from vetting sites.

You made it to the end of the series! Hopefully, you feel empowered to choose an incredible nonprofit to support this year and that you had just as much fun reading the series as I had writing it. If you are interested in adding philanthropy to your financial plan, we have strategies to share with you. Feel free to email your Center planner with questions or contact@centerfinplan.com if you are new to The Center (we welcome you!).

Reminder: If you plan on donating this year, don't forget tax-advantaged opportunities extended to donors through the CARES Act:

• In addition to the standard deduction, non-itemizers can take an above-the-line deduction for $300 of charitable contributions per person. Joint filers can deduct up to $600. Additionally, itemizers can now deduct donations up to 100% of their AGI.

Are you working on your year-end tax planning? Check this out! Have questions? Don't hesitate to reach out: contact@centerfinplan.com.

Make sure to check out part one of this blog series here, and part two of this blog series here!

Jaclyn Jackson, CAP® is a Portfolio Manager at Center for Financial Planning, Inc.® She manages client portfolios and performs investment research.

Opinions expressed are not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Past performance is not a guarantee of future results. Investing involves risk and investors may incur a profit or a loss. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

How to Pick a Charity…During a Pandemic Part 2: Commitment to the Mission

While vetting a charity can be challenging in any environment, vetting a charity without interacting in person can be especially challenging. In this three-part blog series, I hope to share a few tips to help you pick and support amazing charities from the comfort of your home. 

Participate in The Center's Annual Toys for Tots Drive! Donate by December 17th.

Learn how The Center gives back throughout the year. 

Contributed by: Jaclyn Jackson, CAP®

In part one of our "How to Pick a Charity...During a Pandemic" blog series, we discussed key documents to help identify a great nonprofit. In part two of our series, I'll show you how to determine whether money donated to nonprofits goes towards their programs & initiatives. 

On A Mission 

We understand a nonprofit is on a mission when they dedicate the majority of their resources toward implementing the programs that support the communities they aim to serve. While we generally assume the best of charities, sometimes a tiny voice in our minds ponders if our contribution actually helps people in need. Do our donations really support service programs? If you've ever heard that small voice, this number (with the help of your Certified Public Accountant, or CPA), can give you insight about a nonprofit's program spending habits:

The Program Expense Percentage, also known as The Program Efficiency Ratio, divides the organization's program expenses by the organization's total expenses. (Your CPA can use the charity's Form 990 to calculate this percentage.) 

While the program expense percentage varies by service provided and operating expenses needed to provide the service, experts recommend the percentage be at least 65%. In other words, 65% or more of the charity's resources (as evaluated by expenses) should be used for programming. If you can find two to three years of 990 forms for a nonprofit, you can determine spending trends. Charities that consistently underspend on their programs and services do not have as strong an impact on their charitable missions. 

Before we chop off any heads, it is also important to understand the nonprofit's program "stage".  For example, if the program is new or is trying to expand, more than ordinary operational expenses (staff hires, technology, etc.) may be required to catapult programming. Having data is great, but pairing data with accurate analysis is better.  Talk to the nonprofit about discrepancies, so your analysis is accurate.

Pro Tip: Pay attention to whether the charity practices "joint cost allocation". Joint cost allocation lumps fundraising with the charity's program expenses. This tactic blurs the line between resources spent on solicitation and service programs. If you bump into this practice, get clear about the type of charity you want to support. It may be appropriate for lobbying or public awareness organizations to use joint cost allocation, but you may not be able to deduct your donation to those types of organizations. On the other hand, joint cost allocation may be a red flag for service-based nonprofits.

Phone a Friend

I want to emphasize, rely on your support team to do the math for you. A CPA can help you crunch numbers as well as compare 990s to annual reports and financial statements. This is especially helpful if any of the documents are vague or missing information. If you need your gifting efforts to consider your tax or estate planning needs, ask your financial planner (that is why we are here!) for help.

Reminder: If you plan on donating this year, don't forget tax-advantaged opportunities extended to donors through the CARES Act:

• In addition to the standard deduction, non-itemizers can take an above-the-line deduction for $300 of charitable contributions per person. Joint filers can deduct up to $600. Additionally, itemizers can now deduct donations up to 100% of their AGI.

Are you working on your year-end tax planning? Check this out! Have questions? Don't hesitate to reach out: contact@centerfinplan.com.

Make sure to check out part one of this blog series here!

Jaclyn Jackson, CAP® is a Portfolio Manager at Center for Financial Planning, Inc.® She manages client portfolios and performs investment research.

Opinions expressed are not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Past performance is not a guarantee of future results. Investing involves risk and investors may incur a profit or a loss. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

How to Pick a Charity…During a Pandemic Part 1: Important Documents

While vetting a charity can be challenging in any environment, vetting a charity without interacting in person can be especially challenging. In this three-part blog series, I hope to share a few tips to help you pick and support amazing charities from the comfort of your home. 

Participate in The Center's Annual Toys for Tots Drive! Donate by December 17th.

Learn how The Center gives back throughout the year. 

Contributed by: Jaclyn Jackson, CAP®

Answering the Call 

According to a study done by the Urban Institute, nonprofits need our support more than ever. The study revealed 4 in 10 small charities experienced a dip in donations amid pandemic and economic concerns. Likewise, 29% of large nonprofits faced the same fate. The timing couldn't be worse as the demand for services provided by nonprofits has increased.

Luckily for nonprofits, the gifting season is here, and people across the nation open their hearts and pockets to wonderful nonprofits. Chances are, if you're reading this blog series, you're probably one of those soft-hearted individuals.

Let the Vetting Process Begin: Important Documents

You want to give wisely, and I want to support your efforts. Let's get started! In part one of this series, I'll outline the documents you'll need to assess a nonprofit. These documents are usually available on a nonprofit's website. However, you may have to do a little digging. Utilize navigation menus commonly found at the bottom of website homepages; go to the "about" page to find leads; use site search fields to search for reports by name.

1. Form 1023 - Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code: This tells you the organization is, in fact, a 501(c)(3) nonprofit. Aside from religious institutions (which have a different tax identification code), individuals most commonly support 501 (c)(3)s charities. Sometimes, nonprofits will provide their Employer Identification Number (EIN) instead of this form. You can use the number to confirm 501(c)(3) status on the IRS website.

2. Annual Report: Use this holy grail document to gain a comprehensive view of the nonprofit you're considering. Annual reports generally contain a charity's mission statement and focus, projects initiated (fundraising events, volunteer efforts, community programs), financial information, potential donors, and an account of significant contributions.

3. Form 990 - Return of Organization Exempt From Income Tax Form: Similar to how individuals tell the IRS about their financial activity, Form 990 provides the government and the public with a snapshot of the charity's activities for that year.

Bonus Documents

If you're thinking about giving a larger-than-normal contribution or becoming a long-term donor, inquire about the following policy documents. These items are not always on websites, so you may need to make an email request or call the nonprofit. 

• Code of Ethics or a Statement of Values: Company guidelines to help employees, volunteers, and board members make ethical choices and create accountability for those choices.

• Whistleblower Protection Policies: This shows a charity is open to hearing concerns or complaints about its practices by demonstrating that it values transparency and accountability practices.

• Governance Policies for nonprofit boards, internal controls, and conflict of interest policies help to ensure ethical leadership practices.

We've covered key documents to help you pick a great nonprofit. In part two of our series, I'll show you how to determine whether money donated to nonprofits actually goes towards programs & initiatives. 

Reminder: If you plan on donating this year, don't forget tax-advantaged opportunities extended to donors through the CARES Act:

• In addition to the standard deduction, non-itemizers can take an above-the-line deduction for $300 of charitable contributions per person. Joint filers can deduct up to $600. Additionally, itemizers can now deduct donations up to 100% of their AGI.

Are you working on your year-end tax planning? Check this out! Have questions? Don't hesitate to reach out: contact@centerfinplan.com.

Jaclyn Jackson, CAP® is a Portfolio Manager at Center for Financial Planning, Inc.® She manages client portfolios and performs investment research.

Opinions expressed are not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Past performance is not a guarantee of future results. Investing involves risk and investors may incur a profit or a loss. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

Center Participates in Annual Walk to End Alzheimer’s

Contributed by: Center for Financial Planning, Inc.®

Center Team members recently participated in the Walk to End Alzheimer’s in Brighton. The walk, sponsored by the Alzheimer’s Association of Michigan, raised funds and awareness for dementia, a disease that has and continues to impact our clients, client’s families, and team member’s families. Alzheimer’s and other dementias impact those diagnosed and their families so significantly from a psychological, emotional, and financial standpoint that we make substantial efforts at The Center to provide extra information, resources, and support to clients who may be impacted. Helping to raise awareness and funds for research is just one of the things we do!

If a client or family member were to receive a dementia diagnosis, we have helpful resources and action steps available here:

How to Reduce the Risks of Dementia and Diminished Capacity to Your Retirement Plan

A Dementia Diagnosis and Your Financial Plan