And, the wild ride continues! It’s been three years since the Covid-19 pandemic swept the globe and wreaked wide-ranging havoc on so many areas of the economy. Then came inflation, rising interest rates, and a volatile stock market. Now, in early 2023, advisors and clients are also dealing with concerns about the health of the banking system in the wake of Silicon Valley Bank’s collapse.

Your philanthropic clients may seek your advice on how the recent events in the banking world could impact their approach this year to charitable giving. We’re sharing three factors to keep in mind as you counsel charitable individuals and families.

The outlook is chilly for tech start-ups and the venture capital firms who fund them. 

“It feels like winter is here,” according to tech sector leadership. When tech was hot and it sometimes appeared that many start-ups could do no wrong, you might have noticed an uptick in conversations with entrepreneurs and venture capital clients about planning for pre-IPO gifts of closely-held stock of a tech company or even investing in tech companies using philanthropic assets. Right now, though, opportunities like this may be rare. A silver lining may emerge, however. As both the failure of Silicon Valley Bank and the overall tech sector malaise shake out, what may emerge is a “more sustainable and streamlined asset class,” which, in turn, could lead to more stable future opportunities for your clients to make gifts of highly-appreciated closely-held shares.  

Nonprofit organizations should closely examine their reserve funds.

A nonprofit’s accounts at a bank are subject to the same FDIC rules as a for-profit company, with a few additional twists that could allow a nonprofit to diversify. Many of your clients who serve on the boards of directors of their favorite nonprofits are aware of this and may be working with fellow directors and nonprofits’ executives to ensure that the money is safe. This is an excellent time for any nonprofit to review its reserve funds and consider whether establishing an Organizational Fund at the Idaho Community Foundation might be a wise move to maximize a nonprofit’s financial position – whether through a rainy-day reserve fund, an endowment, or both – to ensure that the organization can meet community needs for the long term. A fund at the Idaho Community Foundation can be a cost-effective option for a nonprofit to access investment options that might not otherwise be available. Furthermore, we are committed to helping organizations exercise outstanding stewardship of funds, including honoring donor intent.

Focus on the positive effects of technology on philanthropy.

Indeed, the softening of the tech sector may very well negatively impact tech stocks (and bank stocks!), at least in the short term, and therefore could diminish enthusiasm for your clients to transfer those assets to their Donor Advised Funds or other funds at the community foundation. That said, there is plenty of evidence to suggest that technology itself is increasing the opportunity and efficiency of charitable giving overall. In addition, even in the midst of an industry downturn, tech companies have made many people very wealthy, and their charitable giving stories are likely just beginning to be told. If your client base includes tech entrepreneurs and executives, it’s most certainly appropriate (and likely expected) that you would include charitable giving in your conversations.  

As always, the Idaho Community Foundation is here to help. Contact our team anytime to discuss your clients’ options for meeting their charitable giving goals, even in today’s challenging economic climate.

Welcome Clark Hyvonen
We are so pleased to welcome Clark Hyvonen as our new Philanthropic Advisor for Southwest Idaho and South Central Idaho. He will help Idahoans make their communities even better through philanthropy by working with them to create charitable giving funds to support their favorite causes and organizations.

Clark has a bachelor’s degree from Purdue University and an MBA from Eastern Illinois University. He previously worked for the University of Idaho as the director of estate, trust and gift planning.

He and his wife live in Star. They have two grown daughters and two grandchildren. Clark enjoys athletics of any kind and has played and coached football, basketball, baseball, ice hockey and soccer.

Clark traced his ancestry and discovered he is descended from Norwegian Vikings on his mother’s side and a Mayflower passenger on his father’s side. He also enjoys hiking and camping in Idaho’s backcountry.

“I’m looking forward to helping Idahoans make a meaningful charitable impact in their community,” Clark said.

Congratulations, Kris Kamann!
Senior Philanthropic Advisor Kris Kamann is now certified as a Chartered Advisor in Philanthropy ®, one of only four in Idaho.

The CAP designation is issued by the American College of Financial Services, the premier education institution dedicated to the development of financial services professionals.

“I look forward to providing even more robust charitable giving services to Idahoans who want to give where they live,” Kris said.

Congratulations, Peter Faucher!
Our North Idaho Philanthropic Advisor, Peter Faucher, was selected for the 2023 class of Leadership Coeur d’Alene, a highly competitive program administered by the Coeur d’Alene Regional Chamber. 

Leadership Coeur d’Alene was created to further engage and educate leaders in business, education, the arts, religion, government and community-based organizations. The program meets monthly to learn about and discuss a wide variety of issues such as the economy, government, media, public safety and philanthropy. Speakers will include local CEOs, elected officials and other community leaders. The 2023 class will also plan and execute the sessions in 2024.

“I’m excited and incredibly honored to be selected for this year’s Leadership class,” said Peter. “I know we all have one thing in common – to make our community a better place.”

For more information about ICF, please contact us:

Kris Kamann Senior Philanthropic Advisor (208) 342-3535 x14 Kris@idahocf.org	Rich Ballou Philanthropic Advisor East (208) 342-3535 x22 Rich@idahocf.org	Peter Faucher Philanthropic Advisor North (208) 342-3535 x23 Peter@idahocf.org	Clark Hyvonen Philanthropic Advisor Southwest/South Central (208) 342-3535 x28 Clark@idahocf.org
The team at the Idaho Community Foundation is a resource and sounding board as you serve your philanthropic clients. We understand the charitable side of the equation and are happy to serve as a resource as you manage the primary relationship with your clients. This newsletter is provided for informational purposes only. It is not intended as legal, accounting or financial planning advice.

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