Economic turbulence, inflation concerns, and a general sense of financial instability have made 2025 a challenging year for individuals and organizations. As you consider how to support your favorite nonprofits this year, take a moment to evaluate which assets may be best suited for your donations. Our team is here to help answer your questions, including a few that are coming up frequently this year:
Should I give stock?
If you are concerned about preserving cash right now, then donating appreciated, publicly-traded stock can be a highly-effective strategy. By transferring long-term, marketable securities directly to a donor-advised or other type of fund at the community foundation, you avoid capital gains tax and may be eligible for an income tax deduction based on the fair market value of the securities. The community foundation, in turn, can sell the securities without incurring tax, maximizing the dollars available to support your favorite charities. Even in a down market, many investors still hold stocks that have appreciated over time, making this a win-win for both you and the causes you care about.
If you’re interested in donating stocks, please fill out our Security and Wire Donation Form.
Should I give cash?
If your investment portfolio has declined significantly across the board, you may prefer to contribute cash this year. Doing so allows your investments time to recover, potentially increasing their value for future charitable gifts. Contributing cash to your fund at the community foundation allows you to organize your giving in one place, making it easier to gather tax information when April 15 rolls around again.
How can my donor-advised fund help in challenging times for our community?
Donor-advised funds offer flexibility for your charitable giving, particularly in unpredictable market conditions. By contributing to a donor-advised fund, you receive an immediate tax deduction and can recommend grants over time, allowing you to support your favorite organizations even when your personal finances are in flux. Many people like having a reserve of charitable funds that enables them to maintain consistent support for the causes they love, regardless of market ups and downs.
What else should I consider as I plan my charitable support this year?
Giving strategically in uncertain times is important to help stabilize the nonprofits in our community, and allows them to continue supporting people in need. As we found in our recent Boulder County Nonprofit Survey, local organizations are doing their best to meet increasing needs while overcoming losses in government funding. The community foundation can help you formalize long-term commitments to your favorite organizations while also ensuring that immediate needs are addressed. You can also give to our newly created Resilience Fund—supporting our ability to provide nonprofits with education, technical assistance, and financial support.
The team at the community foundation is here to help you make a difference in our community as economic pressures mount. Please reach out to your staff representative or to the community foundation at philanthropicservices@commfound.org to discuss the best options to achieve your charitable goals, even in a year as unpredictable as this one.
