Several strategic decisions require the immediate attention of every reader of this publication so we suggest that you pay attention and move forward immediately.

  1. Donor Advised Funds (DAFs) continue to receive enormous amounts of money for future charitable gifts so managers of nonprofits need to develop strategies to accept support that they will ultimately receive from donors. This requires making certain that your software is fine-tuned to tag donors who have a DAF. While correspondence and outreach should be compatible with DAF operating policies, solicitations need to recognize that donors have immediate resources to draw on for giving and that more traditional appeals may not be appropriate or compelling. Be DAF-specific whenever possible. We also strongly suggest that every middle income and higher household consider creating a DAF prior to year’s end.  Consider, too, using appreciated securities as well as cash to start your DAF.
  2. With Wall Street now at record high levels, donors should use appreciated stocks to pay for part or all of year-end (and other) philanthropic priorities. With this in mind, recognize that this allows a donor to avoid paying capital gains taxes since the recipient nonprofit will sell the stock upon receipt and not be required to pay any taxes on the gift.

As we enter the fourth quarter of the calendar year, expect the “usual” influx of payments and new gifts because donors are accustomed to fulfilling these obligations before December 31st. Nonprofit messages should highlight the use of appreciated securities and donors should evaluate how best to take advantage of this way to help their favorites agencies and causes.

Of course, every donor may wish to consult with his/her financial experts to validate this strategy but don’t wait until December to inquire about maximizing this approach.

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