Market Trends for Philanthropic Giving in 2018

Last year was defined by steady global economic growth, low inflation, and accommodative monetary policies which helped fuel a rally in asset prices. The outlook for 2018 is healthy, and though the new tax plan may complicate giving strategies, many are increasing their planned giving.

Here are three things to consider when planning your philanthropic giving for 2018:

Capital Gains are Up

Thanks to the recovering domestic and global economy, capital gains are up, which means that gifting stock could be very advantageous for donors. Donors can improve their efficiency of giving by making a gift of stock when shares are experiencing a significant increase in value

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Market is Up

Business confidence is at a high, driving market growth onward and upward. This means that individuals may want to pull their IRA required distributions now. It is possible to direct the required minimum distribution to a charity, and it will not be reported as taxable income on your tax return – this is called a “qualified charitable distribution.”

Bunching Makes Sense

In response to the new tax plan, one giving strategy being considered is “bunching,” where donors double up on contributions every other year to beat the standard deduction. Bunching, however, has the potential to be harmful to charity or non-profit organizations who rely on a steady stream of donations for annual operations. This is where a donor-advised fund can help. A donor-advised fund allows contributors to donate money and take a tax deduction in the same year, and then distribute the money to selected charitable organizations over time.

Contact the Marietta Community Foundation today to learn more about how you can maximize your charitable giving in 2018.