Skip to main content

Planned Giving

Planned Giving
November 3, 2022

Planning Strong Year-End Giving in a Bear Market

byInspiring Philanthropy Newsletter

Giving appreciated stock to charitable organizations is certainly a highly-effective tax strategy. During years when highly-appreciated stock is in short supply, however, implementing this strategy may be easier said than done.

This is when donor-advised funds come in especially handy. Now is the time to discuss charitable giving with those clients who regularly added to their donor-advised funds throughout the market’s long bull run. If these clients intend to ride out today’s market conditions in their personal portfolios, this year’s bear market doesn’t mean the clients’ year-end charitable giving has to take a hit. These clients can use their donor-advised funds to support their favorite organizations, sometimes even at levels consistent with prior years.

Similarly, for some clients, this may be a year to consider contributing cash to a donor-advised fund instead of donating highly-appreciated stock (which has been the go-to gift for so many of the last several years). Gifts of cash could reduce the burden on a client’s personal stock positions that may have fallen in value dramatically, giving these positions more time to recover value and, at some point in the future, be contributed to a donor-advised fund at a higher value (thereby resulting in a higher tax deduction for the client).

Now may also be a good time for clients to consider using their cryptocurrency in creative ways to meet their charitable giving goals. Clients holding cryptocurrency may have come to the conclusion that it does not necessarily provide the protection against inflation they thought it would. A client could, for instance, sell their cryptocurrency at a loss and contribute the cash to their donor-advised fund. Then, the client can keep an eye on the cryptocurrency market and decide when–or whether–to wade back in.

Finally, consider encouraging your clients who’ve not yet established donor-advised funds at the community foundation to consider doing so now. Not only does a donor-advised fund help organize charitable giving, but over the long term, it can also protect a client’s ability to support favorite charitable organizations even when market conditions are rough.

The team at the community foundation is always happy to help your clients maximize both the philanthropic and financial elements of their charitable giving strategies. We look forward to hearing from you.

Click here for more information on Donor-Advised Funds at FACF.

The Legacy Society is composed of individuals who have provided for the Fremont Area Community Foundation as part of their planned gifts. These are special people who are dedicated to a better future for their community for years to come.

There are many different ways to become a member of the Legacy Society. Simply inform the Foundation of the type of gift you have chosen to leave. This may include cash, securities, life insurance, IRA, memorials or other bequests. Gifts may offer tax advantages. We advise consultation with your financial advisor or attorney.

Becoming a member of the FACF Legacy Society has many advantages:

  • Flexibility - Through the Foundation you can serve several charitable interests in one place.
  • Involvement - Donors can choose the level of involvement according to their preferences.
  • Naming Rights - Funds can be named as desired: for an individual, a family, a purpose or an organization.
  • Experience - The Foundation’s Board of Directors and staff are experienced with philanthropy in the Fremont area.
  • Tax Savings - The Fremont Area Community Foundation is a 501(c)(3) organization and qualifies as a public charity under federal tax law.
  • Permanence - The Foundation will continue to respond to community needs of the future as they evolve.

For more information about planned gifts through the Fremont Area Community Foundation, please contact Melissa Diers at 402-721-4252.

November 3, 2022

Planning Strong Year-End Giving in a Bear Market

byInspiring Philanthropy Newsletter

Giving appreciated stock to charitable organizations is certainly a highly-effective tax strategy. During years when highly-appreciated stock is in short supply, however, implementing this strategy may be easier said than done.

This is when donor-advised funds come in especially handy. Now is the time to discuss charitable giving with those clients who regularly added to their donor-advised funds throughout the market’s long bull run. If these clients intend to ride out today’s market conditions in their personal portfolios, this year’s bear market doesn’t mean the clients’ year-end charitable giving has to take a hit. These clients can use their donor-advised funds to support their favorite organizations, sometimes even at levels consistent with prior years.

Similarly, for some clients, this may be a year to consider contributing cash to a donor-advised fund instead of donating highly-appreciated stock (which has been the go-to gift for so many of the last several years). Gifts of cash could reduce the burden on a client’s personal stock positions that may have fallen in value dramatically, giving these positions more time to recover value and, at some point in the future, be contributed to a donor-advised fund at a higher value (thereby resulting in a higher tax deduction for the client).

Now may also be a good time for clients to consider using their cryptocurrency in creative ways to meet their charitable giving goals. Clients holding cryptocurrency may have come to the conclusion that it does not necessarily provide the protection against inflation they thought it would. A client could, for instance, sell their cryptocurrency at a loss and contribute the cash to their donor-advised fund. Then, the client can keep an eye on the cryptocurrency market and decide when–or whether–to wade back in.

Finally, consider encouraging your clients who’ve not yet established donor-advised funds at the community foundation to consider doing so now. Not only does a donor-advised fund help organize charitable giving, but over the long term, it can also protect a client’s ability to support favorite charitable organizations even when market conditions are rough.

The team at the community foundation is always happy to help your clients maximize both the philanthropic and financial elements of their charitable giving strategies. We look forward to hearing from you.

Click here for more information on Donor-Advised Funds at FACF.