Financial Basics

How do people with money think about money?

So often, our success in securing a gift depends on picking up the nuances in your conversations with benefactors. The first step in reaching that goal is being able to hear and understand what's being said.

So. How can you learn to hear the nuances of what a donor is saying about their financial situation if you don't currently have a working understanding of "money"?

To be truly successful, you need to become conversant about money, and this section will help you do so.

Our approach here is to concentrate on topics that can be relevant to our own situations and stations in life starting with: 

1. 8 Facts About Capital Gains and Losses. You must report all capital gains.
2. Opportunity Cost. This calculations captures both the price paid for an activity or object and the value of alternative uses of the time and/or money involved.
3. Roth IRA vs Traditional IRA. The rules for each are different, but there are shared exceptions, too.
4. Rule of 72. A calculation that estimates the number of years it will take for a given amount of money to double in value at a specified rate of interest.
5. More content coming soon ...

 

All content provided by Philanthropy Works is provided in the spirit of education.  It is not legal or tax advice. This material merely provides an overview of, and does not purport to describe completely, the requirements established by Internal Revenue Code, the Treasury Regulations and related IRS pronouncements. You and your prospective benefactors must consult an attorney for legal advice.  You will note there are occasions in the material where PW contributors offer prejudices and opinions.  Please accept them as such.