Now is the time to share important reminders with your clients about year-end gifts. Time is indeed of the essence!

Gifts of appreciated stock still shine

Giving in a roller coaster market may continue to be a real concern for many of your philanthropic clients, but remember, not all stocks are down. Gifts of appreciated stock to a donor-advised fund or other type of fund at the Winona Community FOundation is still one of the most tax-savvy ways to support favorite charitable causes because capital gains tax can be avoided. And of course, a stock market rally can present timely opportunities.

Donor-advised funds help both the donor and the donor’s favorite nonprofits

Grantmaking from donor-advised funds (DAFs) continues to rise, especially as donors and their advisors pay increasing attention to the ways a donor-advised fund can help with tax planning and, importantly, keep a donor’s giving levels consistent even in lower income years. Reach out to the Foundation to learn more about how “bunching” at year end can maximize clients’ tax benefits, and at the same time ensure that nonprofits are supported as demands on their missions continue to grow in choppy economic waters.

Year-end giving deadlines are firm

Watch the calendar closely! Year-end can sneak up on all of us, and it’s important not to miss key deadlines for accomplishing your clients’ charitable goals. Please review the deadlines below to find out when certain transactions must occur to be completed during this tax year, including checks to a fund at the Foundation.

Donor Deadlines:

  • Mutual Fund Shares: December 9. These transfers can take up to three weeks to complete. The IRS will not consider the date of your request, only the date it was completed.
  • Stock Donations: December 16 (recommended). These transfers generally take one to three days, but volumes may slow the process down. The IRS will not consider the date of your request, only the date it was completed.
  • Qualified Charitable Distributions (QCDs): December 28 by 4:30 PM. Preferred to ensure timely processing. Banks will not accept deposits past 11 AM on Friday, December 30.
  • Cash, Check or Online Donations: December 28 by 4:30 PM. Preferred to ensure timely processing. Banks will not accept deposits past 11 AM on Friday, December 30.

Fund Holder Deadlines:

  • Grant requests over $5,000: December 14 by 5 PM. These requests will need board approval.
  • Grant requests $5,000 and below: December 20 by 5 PM.