Financial Advisor Offers Three High-Impact Strategies for Effective Use of Your Money

In the realm of finance and philanthropy, more individuals are seeking to invest and donate in a way that reflects their values. Here's a guide to help you make informed decisions.

Firstly, if you're curious about what you're actually invested in, the Invest Your Values tool provided by As You Sow could be a valuable resource. This free tool allows you to discover the environmental, social, and governance (ESG) impact of your investments.

Sustainable investing is on the rise, with an impressive $52.5 trillion in U.S. assets under management. A significant portion of this, $6.5 trillion, is explicitly marketed as ESG or sustainability-focused. Talk to your financial adviser or investment manager about your preferences and ask them to provide an audit of your portfolio, ensuring it aligns with ESG and socially responsible investing (SRI) strategies.

In the world of charitable giving, transparency is key. Many large charities lack transparency in reporting how their funds are allocated, and many are not led by those who deeply understand the problem they're trying to solve. Focus your giving on local grassroots organizations led by people who are most directly impacted by the injustice you're passionate about solving.

If you have access to a bigger platform, consider inviting leaders from local organizations to engage with your personal networks. Donations to 501(c)(4) organizations, though not tax-deductible, can lead to a more direct impact on public policy. A values-aligned financial adviser can help you find 501(c)(4) organizations in your area.

501(c)(4) organizations often fund on-the-ground mobilizing, voter education, and advocacy that drives policy change, especially in underrepresented communities. If your adviser doesn't offer this service, consider checking out ValuesAdvisor's database of advisers who specialize in this area of financial services.

The Kiplinger Building Wealth program, later to be renamed Adviser Intel, handpicks financial advisers and business owners from around the world to share retirement, estate planning, and tax strategies to preserve and grow wealth.

In the realm of sustainable investing, the article provides related content on topics such as climate change, impact investing, ESG investing, and sustainable investing. It also touches upon Trump's trade war and its potential impact on the global economy.

Remember, not all financial advisers or investment managers will provide the information you need or engage in the type of conversation you're seeking. If you don't have a lot of money to spare, consider mobilizing fellow community members to donate. Groups such as mutual aid networks, community bail funds, immigration sanctuary support groups, and local climate collectives are examples of where to give.

Donor networks bring together like-minded people to collectively support grassroots groups. Examples include Women Donors Network, Solidaire, and Movement Voter Fund. By working together, we can create a more sustainable and equitable future.

This article was written by a contributing adviser, not the Kiplinger editorial staff. Advisor records can be checked with the SEC or FINRA.