2024 elections: What will happen when the dust settles
Whew, what a year! Naturally, it will take time to determine how the aftermath of the 2024 elections will impact charitable giving. As the philanthropic sector waits patiently for clarity, here are a few points to keep in mind:
–Don’t get discouraged about year-end fundraising. Keep moving full steam ahead! The 2024 U.S. presidential election is not expected to significantly affect charitable giving for the year because many donors are likely to continue their support. Indeed, looking back, charitable donations have increased in nine of the last 10 election years. 2008 was the only exception, but that is understandable due to the financial crisis.
–Remember that in general, confidence overall tends to increase after an election, which means that your donors may be more likely–or at least probably won’t be less likely–to consider supporting your organization. If you continue to confidently share information with donors about the impact of your programs, you’ll inspire donors to give with confidence, too.
–Tax laws will be up in the air for months after the elections as the budget reconciliation process moves forward. This means you ought to keep talking about the potential sunset of the estate tax exemption and encourage donors to consider charitable giving as a solid planning technique in their estate plans. Remember that your donors care about your mission, and saving taxes is not the only reason they give. That said, potential tax law changes can be an effective catalyst to start a conversation because it’s on your donors’ minds.
Please reach out to the team at the community foundation! We’re happy to serve as a sounding board for strategies to build your endowment and maximize year-end giving, whether it’s an election year or not. We are here for you, always.
Crucial year-end reminders to boost your endowment
As your donors gear up for the giving season, it’s critical that you stay in front of them with simple, concise messages about how they can support your organization’s annual campaign as well as your endowment. Here are three very important reminders that surprisingly are still overlooked by many donors.
–Promote gifts of appreciated stock! Giving appreciated stock is still one of the most tax-savvy ways for donors to support your organization because capital gains tax can be avoided. This is a no-brainer for fundraisers, but it is not automatic for donors who don’t deal with charitable giving every day. Donors tend to reach for the checkbook, which means they may miss out on significant tax benefits, especially because the 2024 stock market has been good to many donors’ holdings. As always, the community foundation can help you facilitate gifts of appreciated stock to your endowment fund or even to your general operating fund.
–Keep mentioning the QCD. Yes, it may feel like a broken record to us, but truly, many eligible donors are still confused by, or totally unaware of, this great opportunity. Make sure your year-end communications include simple messages directed to donors over 70 ½, encouraging them to consider a Qualified Charitable Distribution–up to $105,000 per taxpayer–from an IRA. Distributions can flow either directly to your organization or to your organization’s endowment fund at the community foundation. Ask your donors to consult their tax advisors to evaluate whether the QCD is a good fit, and as always, reach out to the community foundation for assistance.
–Encourage your donors to watch the calendar. Some types of gifts, including QCDs, require several steps to execute. The community foundation is happy to help, and our team can work swiftly, but it’s best to allow at least a couple of weeks to ensure that all the i’s are dotted and t’s are crossed. Remind donors that cash gifts via checks in the mail need to be postmarked or hand-delivered to your office no later than December 31. Gifts of marketable securities also need to be fully transferred by December 31, so make sure your donors contact you in plenty of time for you to process and receive transfers either through the community foundation or directly.
We look forward to working with you and your colleagues to finish 2024 strong!
Five reasons your planned giving strategy should include corporate executives
Corporate philanthropy increased to more than $36 billion according to recently-reported statistics, and although it represents the smallest share of total giving compared to other sources, your planned giving strategy should not overlook the corporate angle, especially as it relates to building your endowment fund at the community foundation. If you’re not careful, you may leave money on the table!
Here are five reasons you should involve corporate executives in your planned giving outreach:
They’ve got big potential. Corporate executives often have significant wealth that could translate into sizable planned gifts for your endowment fund. Executives’ capacity to give through estate plans or other planned giving vehicles may far exceed what they can donate annually from income. Many executives may not yet have considered planned giving options because they are not familiar with the wide range of options.
They like tax benefits. Executives tend to be very tuned into tax strategies. And of course, planned gifts can offer substantial tax advantages for executives and other high-net worth individuals. It’s always worth mentioning how planned giving could reduce a tax burden while also supporting your organization. An executive may not realize, for example, that leaving a gift to your organization’s endowment fund at the community foundation via an IRA beneficiary designation avoids both estate tax and income tax.
Legacies could be their thing. Many executives are interested in creating a lasting legacy, especially if they’ve dedicated their careers to building a company with a strong local presence. Planned gifts to your endowment fund at the community foundation allow executives to make a major impact through a cause that aligns with their personal and corporate values.
They lead by example. One of the hallmarks of respected executives is, of course, leadership. Many executives have spent their careers leading by example. When executives make planned gifts, it can inspire and encourage others in the company–and executives in other companies–to consider similar donations. And of course, their participation lends credibility to your organization and endowment fund.
They want to help. Executives often have valuable professional expertise and networks that could benefit your organization beyond financial contributions. Engaging executives in planned giving discussions may lead to other forms of involvement, or at the very least, deepen their ongoing advocacy for your organization. Plus, an executive's personal planned gift could complement or enhance a company's existing corporate philanthropy efforts, aligning the company even more deeply with your organization.
Please reach out to the team at the community foundation to discuss these ideas and more! It’s our pleasure to help you engage corporate executives in planned giving discussions. We’re excited about helping you cultivate transformational gifts to your endowment fund that can pave the way for your mission’s future.