Complex Economy, Simple Giving Strategies
The economic landscape of 2025 has presented challenges for many in our community. Concerns about inflation and financial stability are on the minds of individuals and families alike. As you consider how to best support the organizations you care about this year, taking a moment to explore various giving strategies can be a valuable step. Understanding the potential benefits of different asset types for charitable contributions can help you align your generosity with your financial considerations.
At Greater Houston Community Foundation, our role is to facilitate your philanthropic goals and connect you with the causes you care about in the Houston region. While we cannot provide financial advice, we can offer information about various giving methods and how they might work with our services. We often receive questions about giving strategies, particularly in the current economic climate.
Common Inquiries & General Information to Consider
Q: I’m concerned about preserving my cash flow right now. Is there a giving strategy to donate without using cash?
A: Yes, for individuals concerned about preserving cash at this time, donating appreciated, publicly-traded stock can be a method to explore. By transferring long-term, marketable securities directly to a fund at the Community Foundation, such as a donor advised fund, you may be able to avoid capital gains tax on the appreciation. You may also be eligible for an income tax deduction based on the fair market value of the securities at the time of the gift. Even in fluctuating markets, many investors hold stocks that have appreciated over time, making this a potential strategy to consider.
Q: My investment portfolio has seen some declines recently. Is it still a good idea to donate stock?
A: If your investment portfolio has experienced a broad decline, you might prefer to contribute cash this year. Reviewing individual securities and consulting your investment and tax advisors is always valuable. This approach can allow your investments time to potentially recover value for future charitable giving. Contributing cash to a fund at the Community Foundation can help you consolidate your charitable giving in one place, simplifying the process of gathering documentation for tax purposes.
Q: What is a donor advised fund and how can it be helpful in uncertain economic times?
A: Donor advised funds (DAF) offer a flexible approach to charitable giving, which can be particularly beneficial in unpredictable market conditions. By contributing to a donor advised fund, you receive an immediate tax deduction at the time of your contribution and can then recommend grants to your favorite organizations over time. This structure can enable you to maintain consistent support for the causes you care about, even if your personal financial situation is in flux. Many individuals find comfort in having a charitable reserve that allows them to continue their philanthropic commitments regardless of market ups and downs.
Q: What are the key benefits of using a DAF through Greater Houston Community Foundation?
A: Here are some of key benefits that donors often find valuable when utilizing a DAF through the Community Foundation:
Simplicity and Convenience for Your Giving: Think of a donor advised fund as a centralized hub for your charitable activities. Instead of managing relationships and tax receipts from multiple individual charities, you can make a single contribution to your fund at the Community Foundation. This streamlines your record-keeping and can make the process of organizing your giving much more efficient, especially when it comes time to gather information for tax purposes.
Immediate Tax Benefit, Flexible Grantmaking: One significant aspect of contributing to a DAF is that you may be eligible for an immediate income tax deduction in the year you make your contribution. This allows you to receive a potential tax benefit upfront, even if you haven’t yet recommended grants to specific charities. You then have the flexibility to recommend grants from your fund to qualified charitable organizations over time, on a schedule that aligns with your philanthropic priorities and the needs of the community.
Supporting Multiple Causes with Ease: If you support a variety of causes and organizations, a DAF can simplify the process of distributing your charitable dollars. From a single fund, you can recommend grants to numerous charities that align with your interests – whether they focus on education, healthcare, arts and culture, or any other area of need in the Greater Houston community. This eliminates the need for multiple transactions and paperwork.
Potential for Growth of Charitable Assets: While market conditions fluctuate, assets held within a donor advised fund at the Community Foundation have the potential to grow over time, tax-free. This means that the funds available for future grantmaking could potentially increase, allowing you to support even more impactful work in the community down the line.
Expertise and Local Knowledge: By partnering with the Community Foundation, you gain access to our team’s knowledge of the local philanthropic landscape. We can provide information about community needs, connect you with organizations doing impactful work, and help facilitate your grantmaking process within the Greater Houston area.
Continue reading: Giving Made Easy: How Greater Houston Community Foundation Supports Your Philanthropy
“I learned of the Greater Houston Community Foundation from friends who had established donor advised funds at the Foundation. My company, Puffer-Sweiven, used the Community Foundation to establish an employee relief fund in the aftermath of Hurricane Harvey. The Community Foundation had been very responsive to the company and the employees in establishing that fund. My wife, Melissa, and I have been generous donors in Houston for the last twenty-five years. When I had appreciated private securities from my business, it made sense to establish a donor advised fund with some of those appreciated securities. We were able to enjoy the tax benefits of the donation today while preserving charitable flexibility for the future. The Community Foundation worked collaboratively with me and my company in the transfer of securities. The process and the paperwork were very straightforward. Greater Houston Community Foundation focused on making sure that all parties were satisfied with the outcome of the donation.”
Albert Grobmyer, Greater Houston Community Foundation Fundholder
Q: How can strategic giving this year help the charities in our community?
A: Giving strategically in uncertain times is vital for helping to provide stability to the charities in our community and enabling them to continue their essential work supporting those in need. The Community Foundation can assist you in establishing strategic giving arrangements while also helping to ensure that immediate needs are addressed through your grant recommendations. Maintaining support for the organizations you care about helps ensure their continued impact, especially when resources may be stretched.
Continue reading: Trust and Impact: Strengthening Houston Through Strategic Philanthropy
Additional Considerations for Your Charitable Planning This Year
Strengthening your charitable giving during uncertain times is more than just a gesture—it’s a powerful way to foster resilience and hope within our community. By thoughtfully planning your contributions, you ensure that vital organizations remain steadfast in their mission to support those in need, now and into the future. Greater Houston Community Foundation stands ready to partner with you, offering tailored solutions to meet both your immediate and long-term philanthropic goals.
Your generosity can be a catalyst for sustained impact, even amid economic uncertainty. We invite you to connect with our team and explore how your giving can create meaningful change, provide stability, and uplift our community during these unpredictable times. Together, we can make a lasting difference—because by giving strategically, we build a stronger, more resilient Houston for everyone.
More Helpful Articles by Greater Houston Community Foundation:
- How To Set Up a Donor Advised Fund
- Amplified Collaborative Giving in Houston: Fueling High-Impact, Community-Driven Solutions
- How to Start a Scholarship Fund
- The Team Approach to Philanthropy
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