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

This is when Donor Advised Funds are especially handy. Now is the time to discuss charitable giving with those clients who regularly contributed to their DAFs 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 their year-end charitable giving has to take a hit. These clients can use their DAFs to support their favorite organizations, even at levels consistent with prior years. 

Related, now is a good time for clients to evaluate the asset allocation in their DAFs. The Idaho Community Foundation is happy to assist your clients with assessing cash positions in their DAFs as a potential source of year-end giving. 

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 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 DAF at a higher value (thereby resulting in a higher tax deduction for the client). 

Finally, consider encouraging your clients who’ve not yet established DAFs at the Idaho Community Foundation to consider doing so now. Not only does a DAF help organize charitable giving, but over the long term it can protect a client’s ability to support favorite charitable organizations even when market conditions are rough.

Our team is always happy to help your clients maximize both the philanthropic impact and financial elements of their charitable giving strategies. Learn more about Donor Advised Funds or any of the Idaho Community Foundation’s charitable giving opportunities. We look forward to hearing from you.

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 Idaho (208) 342-3535 x22 Rich@idahocf.org	Peter Faucher Philanthropic Advisor North Idaho (208) 342-3535 x23 Peter@idahocf.org

ICF’s Senior Philanthropic Advisor Lisa Bearg recently became a 21/64 Certified Advisor, the only one in Idaho. It’s a designation that means she has training and experience working with multigenerational families to help them hone their philanthropic giving.

“There are profound differences in the way different generations view philanthropy,” says Lisa, who has worked for ICF for eight years. “We’re able to help families navigate those conversations to ensure their giving is effective and meaningful to all members.”

Lisa works closely with ICF’s Donor Advised Fundholders, many of whom involve their children and/or grandchildren in decisions about which Idaho nonprofits and causes to support. She said 21/64 training helps her facilitate deep, thoughtful conversations about family values and how fundholders want to support their community.

“One of my favorite conversations was with a family with three generations, including a 9-year-old,” Lisa recalls. “They each shared learning and insight that helped them understand each other better. It was magical to witness.”

Learn more about Donor Advised Funds or any of the Idaho Community Foundation’s charitable giving opportunities.

 

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