October 15, 2020
From Jack Doyle, Amergent President & CEO
While most of us are focused on getting DAF donors to make grants or schedule some in 2020, the average DAF donor is thinking about something else—they are thinking about how much to donate into their giving account in 2020.
It’s going to take repeated “reminders” from you to make grants to cut through this fog.
For consideration of the DAF donor:
- The DAF donor has some amount of stocks, bonds and/or financial securities. If they have held technology stocks for more than one year, they have appreciated a lot.
- With the 2020 federal relief packages, future tax cuts are unlikely, with taxes likely to go up.
- With a change in the Oval Office, 2021 taxes will increase.
- Donating appreciated stocks into a DAF giving account in 2020 will result in a tax deduction for the donor’s 2020 tax return at a known rate.
- Donating stock worth the same amount in 2021 is unlikely to be worth as much in deductions when the 2021 taxes are prepared.
- So, what’s the DAF donor thinking about?
- Maximizing the amount of their 2020 donation of appreciated stock (right up to the last possible date. Schwab and Fidelity are asking existing donors to make their stock donations before December 1 because it could take weeks to have the funds available).
While this will be good for future charitable giving, it might be a big distraction and delay to 2020 giving unless there are ongoing reminders in all your channels of communication. There will be little time or benefit to the DAF donor to make distributions immediately after these new funds are available in their giving account.
Beat the drum loudly for DAF donors to grant generously from their available funds today.
