Welcome to BW’s Smart Money podcast, where we answer your real-world money questions. In this episode, learn how to maximize Southwest Companion Pass benefits and how to plan effective charitable giving to make your donations count. Hosts Sean Pyles and Sara Rathner discuss travel savings and effective philanthropy to help you understand how to maximize rewards and make thoughtful donations. Sean begins by talking to travel Nerds Meghan Coyle and Sally French to discuss the Southwest Companion Pass, with tips and tricks on earning it through points and flights, timing it for maximum value, and using it strategically for travel savings. Then, Sean and Sara talk to Grace Nicolette, Vice President at the Center for Effective Philanthropy, about planning and optimizing your charitable giving. They discuss how to align donations with personal goals, avoid common pitfalls like over-focusing on nonprofit overhead costs, and ensure your contributions have a meaningful impact. Check out this episode on your favorite podcast platform, including BW stories related to this episode. Auto loans from our partners. The scoring method considers coverage options, customer experience, customizability, cost, and more factors. The rating formula takes into account coverage options, customer experience, customizability, cost, and other factors. The rating system takes into account coverage options, customer experience, customizability, cost, and more to determine the final score. The rating is determined by BW’s editorial team and includes coverage options, customer experience, customizability, cost, and more in the scoring formula. If you travel frequently with a companion, such as your significant other, parents, or best friend, the Southwest Companion Pass is a great way to save money on flights. It is especially valuable for those who fly Southwest often, particularly if you live near a Southwest hub. The designated companion does not have to be a partner and can be anyone you choose, such as a child, allowing for family travel benefits. The pass can be used for any flight with no blackout dates, making it ideal for high-priced flights or when booking with Rapid Rewards points. However, it may not be as beneficial for international travel due to higher taxes and fees. To earn a traditional Companion Pass, you must either fly 100 qualifying one-way flights in a calendar year or earn 135,000 Rapid Rewards points. Timing is crucial to maximize the pass’s validity, as it is valid for the remainder of the calendar year in which it is earned and the following calendar year. It is important to plan your spending and credit card usage to ensure the pass is earned in the desired calendar year. Additionally, there are various ways to earn points, including using Southwest credit cards for purchases in bonus categories. Next year, any flying you do early in the year will count towards earning a Companion Pass in 2025. Just a reminder that only flights paid entirely with dollars or a voucher from a canceled flight will qualify. Flights booked with Rapid Rewards points will not count towards qualifying flights. Also, transferring Chase Ultimate Rewards points to Southwest will not count towards the 135,000 points needed for the Companion Pass.
Having a Companion Pass can save you a lot of money, as Sally experienced when she and her fiancé had to book a last-minute flight. They were able to save $500 by using the Companion Pass. If you want to learn more about earning a Companion Pass, visit nerdwallet.com/southwest for information on credit cards that can help you earn it.
Southwest flights are a great deal, but there are limited flights out of Portland. Sean wishes there were more flights from there. If you want to learn more about giving effectively, Grace Nicolette from the Center for Effective Philanthropy shares tips on maximizing your charitable donations. The key is to research nonprofits in advance and align your goals with theirs. Don’t focus too much on overhead administrative costs ratios when choosing a nonprofit to donate to. When we consider the importance of supporting nonprofits, it’s essential to ensure they have the resources necessary to attract top talent, maintain updated systems, and perform their best work. Instead of relying on a single metric to determine a nonprofit’s effectiveness, it’s crucial to understand the nuances of each organization’s goals and impact.
One common concern among potential donors is the compensation of nonprofit executives compared to the organization’s mission. It’s important to consider whether high-level salaries align with the organization’s ability to attract top talent and make a meaningful difference.
To make effective charitable contributions, individuals should first clarify their own goals and align them with causes that resonate with them personally. Whether supporting local initiatives or global efforts, a balanced approach that addresses various needs is essential.
While metrics can offer insight into a nonprofit’s performance, donors can also review annual reports and tax filings to understand how their contributions are being used. Providing nonprofits with flexible funding allows them to address diverse needs and respond to unforeseen challenges.
Strategic giving involves thoughtful consideration of where and how to allocate donations for maximum impact. By researching and engaging with nonprofits, individual donors can make informed decisions that align with their values and goals. I didn’t have a clear strategy or intention behind my giving. If asked, I would respond, and I believe there is power in being responsive. However, for larger donors, sitting down and outlining their giving goals can make a significant difference. Having a strategy helps identify the causes to support and prevents being pulled in multiple directions. It involves combining resources to give more meaningfully rather than spreading donations thin.
With changes in tax laws affecting charitable deductions, it may be less appealing to itemize deductions for charitable contributions. Despite this, it is essential to continue giving generously to causes one cares about. Trust is crucial in both informal and nonprofit giving, and individuals should research organizations before donating. Developing a personal giving strategy can involve regular contributions to trusted organizations while setting aside a portion for urgent causes that align with personal values.
Reflection and learning after giving is also important, particularly for larger funders. Listening to the needs of communities and nonprofits can guide future giving decisions. This practice can also benefit smaller donors by ensuring their contributions have a meaningful impact. Donors may have a clear idea of what they want to do, but there can be a disconnect between their intentions and what is actually needed. It is important for donors to be open to feedback and understand the power dynamic at play when providing financial support. Communities and causes may hesitate to express their true needs for fear of jeopardizing funding, so it is crucial for donors to create a trusting relationship where feedback can be shared openly.
Listening to communities and understanding their perspectives on what is truly needed is essential in the giving process. Financial wealth is not the only form of wealth, and marginalized communities often possess valuable non-financial assets that donors can learn from. Approaching giving with humility and a willingness to learn from those being supported can lead to a more impactful and mutually beneficial exchange.
Charitable giving can be a personal experience, and donors may be driven by specific causes that touch their hearts. By actively seeking out community foundations and collaborating with others to address local needs, donors can make a meaningful impact beyond just financial contributions. It is important to consider long-term sustainability in giving and to support causes consistently throughout the year, not just during the holiday season. Donors can reach out to nonprofits they support to inquire about matching opportunities or other fundraising initiatives that can maximize the impact of their donations. Sometimes, I find myself scrambling to make charitable donations in the final days of the year, only to have the check arrive in the following year. It’s a pattern that I’m trying to break by starting earlier and setting up automatic monthly payments to my favorite organizations. This way, giving becomes a regular part of my budget and I don’t have to stress about it. It’s a strategy similar to paying yourself first when saving money.
Consistent support like this is crucial for nonprofits, providing them with ongoing operational assistance. For individuals looking to maximize their charitable contributions, starting small and being open to the journey of giving can lead to a more impactful and fulfilling experience.
As we approach the holiday season and beyond, let’s make giving a year-round habit. Remember, the journey of giving is full of valuable lessons and opportunities for growth. Thank you to Grace Nicolette, Vice President at the Center for Effective Philanthropy, for sharing her insights on Smart Money.
For more money-related questions, reach out to the Nerds at 901-730-6373 or email us at [email protected] Visit nerdwallet.com/podcast for additional resources and don’t forget to subscribe to the show on your preferred podcast platform. And as a reminder, we are not financial advisors, so take this nerdy information as general education and entertainment.
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