Hello from the community foundation!
We hope you and your colleagues are doing well, despite a chaotic start to 2025. Please know that the team at the community foundation is here for you as a sounding board, and especially as a partner to help you continue to grow long-term charitable giving so that your organization can thrive well into the future.
We’re happy to provide updates and tips on topics you might be encountering these days as you work with your donors.
–The stock market’s volatility has left many donors feeling less secure about their financial positions. Even younger donors who are years away from retirement cringe when they see the balances drop in their 401(k)s and IRAs. The fact that donors are paying attention creates an opportunity to remind them about the benefits of naming a fund at the community foundation as the beneficiary of an IRA or other qualified retirement plan.
–Don’t let your planned giving strategies wind up on the backburner, even as the economic landscape makes it tempting to focus mainly on annual giving and major gifts. The community foundation is happy to offer tips and suggestions for ensuring that planned giving messages don’t get tossed out the window. It’s too important to ignore.
–Growing your endowment is a priority no matter what the economic climate. That said, you can adjust your approach to reflect the realities of the market. The community foundation is happy to offer tips to help you continue to add to your endowment fund even though times are tough.
Please reach out anytime if you’d like to brainstorm ideas for endowment-building or planned giving, or even troubleshoot an actual donor situation. We are here for you through thick and thin.
–Your community foundation
THIS MONTH’S
TRENDING TOPICS
Managing 401(k) drops: Lemonade from lemons
by Staff Name, Director of Charitable Giving
It is important to know right now that your donors may be feeling the squeeze with their 401(k)s and IRAs. In many cases, account balances can fluctuate significantly due to market swings, especially for those heavily invested in stocks. This may leave your donors feeling a little (or a lot) on edge.
Now that donors are paying more attention to their 401(k)s and IRAs, you’ve got a real opportunity to remind them about the benefits of naming a charity as the beneficiary of a retirement plan. Here’s an example of why this is so advantageous:
When a donor names your organization as the beneficiary of an IRA, you’ll receive the entire IRA balance without paying any income tax. This, in turn, means that the full value of the account stays with you. By contrast, if the donor’s children were to inherit the IRA, they would have to pay ordinary income tax on withdrawals. What’s more, under the SECURE Act, they are required to withdraw the entire balance within 10 years, potentially pushing them into higher tax brackets and reducing the after-tax inheritance.
On the other hand, if your donor’s estate plan leaves the appreciated stock to children, the tax result is very different. Here’s why: When the children inherit the stock, it’s subject to a "step-up in basis” to its fair market value at the date of the donor’s death. This means that if the donor’s children sell the stock immediately after inheriting it, they won’t owe capital gains tax on the appreciation that occurred during the donor’s lifetime. Of course, if the donor were to leave the stock to your organization, you would also avoid capital gains tax, but because the IRA is a far less tax-efficient asset for heirs, it's better to allocate the IRA to charity and the stock to children.
Please reach out to the community foundation for ideas and tips about communicating this opportunity to your donors to help you grow your endowment assets. Now is the time to encourage donors to name your organization as the beneficiary of IRAs. It’s a strategy that maximizes the after-tax value received by both a donor’s heirs and your organization.
Run, don’t walk: Why planned giving can’t wait
by Staff Name, Director of Charitable Giving
The news from the stock market has not been rosy! Investor confidence is rattled and many households are reassessing their financial priorities. Despite increasing challenges brought on by 2025’s turmoil, it’s important to remember that your organization and other charities are presented with a unique opportunity to lean into planned giving discussions.
Certainly many donors are feeling less secure about their finances amid a challenging economic climate and the recent stock market downturn. Understandably, In this environment, donors may be more hesitant to make large gifts or even maintain previous levels of annual giving, preferring instead to preserve liquidity and safeguard their immediate financial well-being.
This is where planned giving comes in. Planned giving offers you and your colleagues a compelling alternative because donors can make a significant, lasting impact without affecting their current cash flow through bequests or beneficiary designations that take effect in the future to support your organization’s endowment.
Unlike annual gifts, planned gifts are less vulnerable to short-term market volatility and provide a more predictable, stable revenue stream—critical for organizational resilience during uncertain times. By proactively engaging donors in thoughtful planned giving conversations, you can help your supporters feel confident about their legacy and financial security, while also ensuring your organization’s long-term sustainability despite today’s economic headwinds.
Please reach out to the community foundation! We’re always happy to offer suggestions and resources to help you maintain momentum with your planned giving program.
Three tips for keeping endowment giving strong amid economic upheaval
by Staff Name, Director of Charitable Giving
If you’re looking at your endowment-building goals for 2025 and feel a wave of uncertainty wash over you, you are not alone! Charities everywhere are facing mounting challenges in 2025 as economic uncertainty, market volatility, and shifting donor priorities threaten endowment giving. The community foundation is here to help ensure that your endowment fund and efforts to grow it remain robust, which in turn fosters the stability of your mission.
Here are three forward-thinking, donor-centric strategies to consider right now to avoid losing momentum on your endowment-building efforts:
Focus on current donors
Retaining existing donors is more cost-effective and impactful than acquiring new ones, especially during economic downturns. Be sure to maintain regular, transparent communication with endowment and legacy donors, sharing real-time updates on how their gifts are making a difference. Express appreciation through personalized recognition, such as thank-you calls from board members, special events, or exclusive updates. You can also offer tailored engagement opportunities, such as site visits or meetings with people your organization has helped, to deepen donor connection and trust. In times of uncertainty, your donors want assurance that their contributions are well-managed and impactful.
Share compelling stories
Donors—especially those considering or maintaining endowment gifts—are increasingly focused on impact and results. To build and sustain trust, highlight specific stories and data that demonstrate the real-world results of endowment giving. Invite donor feedback and, where appropriate, involve them in discussions about endowment management or future priorities. Indeed, a 2023 survey found that 70% of donors consider transparency a key factor in their giving decisions. By proactively sharing information and outcomes, charities can reassure donors and encourage continued or increased endowment support.
Offer choices
Economic upheaval often prompts donors to reassess how and what they give. Meet your donors where they are right now by offering a range of planned giving options, such as charitable trusts, bequests, gifts of appreciated securities, or retirement assets, to accommodate donors’ financial planning needs. At the same time, make giving as simple and flexible as possible, including digital platforms for recurring or micro-donations, and options for non-cash gifts. Related, consider designing your communications to provide personalized experiences, recognizing that different donor demographics respond to different messages and opportunities.
The community foundation is here for you! We are honored to help you maintain strong relationships and keep your endowment efforts resilient, even as economic conditions fluctuate.
This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.