Ready to start….or continue on your Philanthropic Journey:
If you are interested in supporting worthwhile charities or causes – or in building a legacy for yourself or your family to achieve over time – there are ways to ensure you get the most our of your charitable gift.
Throughout the year, the team at Hudson Community Foundation (HCF) works with dozens of financial advisors, accountants and attorneys to help their clients adopt giving strategies to create the greatest possible impact and minimize taxes in the process.
For example, in this time of a healthy stock market, some people might want to sell some shares from their portfolio to fund a charitable contribution. That’s wonderful but there often are advantages to giving that stock directly to a charity or community foundation.
If your stock is “highly appreciated” – meaning you have owned it for more than a year and it’s worth more than its initial price – you can avoid long-term capital gains taxes by donating the stock directly. That avoids the capital gains tax you would pay when selling it – and means that your donation can be worth as much as 20% more than if you simply sold the stock and donated the cash proceeds.
Another example: Some people are fortunate to have an amount they have available to donate to charity. But they are not quite ready to make the decision of how to make the donation or to which organization it should go. Maybe these funds are a cash windfall from an inheritance, sale of a business, stocks or bonds that have accumulated over time.
A great option is to transfer those assets to a Donor Advised Fund (DAF) that allows you to realize the tax benefits immediately. Then, you can direct the amounts in that DAF over time to charities of your choice anywhere in the U.S. Today, more than 100 individuals and families have DAFs at Hudson Community Foundation. We take care of all the paperwork. One tax receipt for your CPA. You can track and direct those funds conveniently online via our website for years to come, and your own financial advisor can continue to invest and manage those funds.
Frequently, the team at HCF fields questions from professional advisors about philanthropy. We appreciate their questions and are grateful that they are having these discussions with their clients and look to HCF as a resource.
As you talk with your advisor about financial and tax benefits of establishing a DAF or other type of fund at Hudson Community Foundation, keep in mind that the benefits go beyond tax savings and administrative streamlining. What’s especially beneficial for HCF fund holders and donors is the resourcefulness of our experienced staff when you want to learn more about particular causes, expand to new nonprofit organizations, or create a commitment into a charitable giving plan.
When a fund holder decides to give to organizations outside of the fund holder’s established giving practices, HCF can help. If there is a specific cause within a donor’s current giving – maybe to a place of worship, a favorite healthcare or recovery facility, or an alma mater – our team can help by crafting terms of a grant to the charitable organizations specifically addressing the request. Some donors like to present the organizations with the check themselves, which is great. HCF prepares all documents for you to present to the organization.
We welcome conversations to help donors give to their favorite causes. Hudson Community Foundation enables simple, smart and meaningful family philanthropy. Although HCF is itself a public charity, it does not promote any one charitable cause. Rather, HCF is committed to expanding the capacity of family philanthropy - no matter where you live.
Read more about Donors Guide to Donor Advised Funds.
With a fund at Hudson Community Foundation (HCF), advisors can manage the charitable assets on their preferred platform at any amount. Assets stay under your management. You can provide your clients with the consistent investment advice they expect. We are your partner in charitable giving!
The team at HCF is a resource as you serve your philanthropic clients. We understand the charitable side and are happy to serve as a secondary source as you manage the primary relationship with your clients. This blog is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.