By John Shadden | Recently, I had a chance to engage with my community, doing something that brightened my day and other’s faces.

I participated in Operation Teddy Bear, a literacy program that serves 5,600 of the most disadvantaged first-graders at Title One schools. I helped put together and deliver brightly colored backpacks with books, art supplies, learning clocks, and of course a Teddy Bear. After we delivered the goodies to our local classroom I had a chance to sit and read stories to the children.

Working with organizations at a grassroots and board member level is one of my passions. I helped found the Food For Kids initiative, a partner of the Volunteer Center South Bay-Harbor-Long Beach, one of my most rewarding experiences.

Giving back on a volunteer basis or through structured philanthropy is something I’ve been involved in through various stages of my life. Whether it’s helping young Olympic-dreamers learn about sailing or reading to kids, I think the charitable spirit is a part of my values and part of American culture.

As a financial advisor with Morgan Stanley Wealth Management, often my clients ask how they can balance giving with personal and business expenses. If giving is important to you then it should be part of your planning process and on the agenda with your advisor during your set semiannual meetings.

You may know that you’d like to give, but wonder how much you should give. While this varies by personal preference you can measure your giving against key benchmarks, such as annual income, or by proportion of your net-worth. Setting a giving goal against net worth is the best strategy for those who have retired or have a recent inheritance. 

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So, what are your neighbors giving? Angelenos gave $6.7-billion in total contributions. The median contribution from Angelenos was $2,630, or about 5.1% of their income. Californian’s overall are slightly less generous, giving 4.4% of their income.

Giving a lump sum of money can be daunting, especially if you wait for the December 31 tax deadline. Consider donating as a sustaining member of a charity, which may facilitate more involvement with a cause you love, and also have the benefit of smaller monthly deductions.

Choosing the right cause and right charity can be difficult, as oftentimes we are approached by representatives soliciting our generosity. You want to make sure the charity will spend your money prudently. One way to ensure this is by using Guidestar which gives you access to nonprofits’ financial statements.

If you want to make philanthropy part of your philosophy, then follow these easy steps: start to plan out your donations early, remember to add philanthropy into your budget and take advantage of tax deductions.

The holiday season is a time to reflect on our values and what we are grateful for, yet we must remember to give back all year. With a little planning and help from your advisor, you can give back in a way that benefits us all.

John Shadden is a Financial Advisor with the Global Wealth Management Division of Morgan Stanley in Los Angeles. The information contained in this interview is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.  Investing involves risks and there is always the potential of losing money when you invest. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors do not provide tax or legal advice.  Investors should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Wealth Management, or its affiliates. Morgan Stanley Smith Barney, LLC, member SIPC.