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As tax time comes and goes for another year, many of you are beginning to address your clients’ charitable giving goals in earnest. With that in mind, this month we’re covering three topics that could be on your clients’ minds as they emerge from winter and tax season.
And the wild ride continues! It’s been three years since the COVID-19 pandemic swept the globe and wreaked wide-ranging havoc on so many areas of the economy. Then came inflation, rising interest rates and a volatile stock market. Now, in early 2023, advisors and clients are also dealing with concerns about the health of the banking system in the wake of Silicon Valley Bank’s collapse.
Your philanthropic clients may seek your advice on how the recent events in the banking world could impact their approach this year to charitable giving. We’re sharing three factors to remember as you counsel charitable individuals and families.
“It feels like winter is here,” according to tech sector leadership. When tech was hot, and it sometimes appeared that many start-ups could do no wrong, you might have noticed an uptick in conversations with entrepreneurs and venture capital clients about planning for pre-IPO gifts of closely-held stock of a tech company or even investing in tech companies using philanthropic assets.
Right now, though, opportunities like this may be rare.
A silver lining may emerge, however. As both the failure of Silicon Valley Bank and the overall tech sector malaise shake out, a “more sustainable and streamlined asset class” may emerge, which, in turn, could lead to more stable future opportunities for your clients to make gifts of highly-appreciated closely-held shares.
A nonprofit’s accounts at a bank are subject to the same FDIC rules as a for-profit company, with a few additional twists that could allow a nonprofit to diversify. Many of your clients who serve on the boards of directors of their favorite nonprofits are well aware of this and may be working with fellow directors and nonprofit executives to ensure that the money is safe.
This is an excellent time for any nonprofit to review its reserve funds and consider whether establishing a fund at San Diego Foundation (SDF) might be a wise move to maximize a nonprofit’s financial position – whether through a rainy day reserve fund, an endowment or both – to ensure that the organization can meet community needs for the long term.
A nonprofit fund at SDF can be a cost-effective option for a nonprofit to access investment options that might not otherwise be available. Furthermore, we are committed to helping an organization exercise outstanding stewardship of its funds, including honoring donor intent.
Indeed, the softening of the tech sector may negatively impact tech stocks (and bank stocks!), at least in the short term, and therefore could diminish enthusiasm for your clients to transfer those assets to their donor-advised or other funds at SDF. That said, plenty of evidence suggests that technology itself is increasing the opportunity and efficiency of charitable giving overall.
In addition, even amid an industry downturn, tech companies have made many people very wealthy, and their charitable giving stories are likely just beginning to be told. If your client base includes tech entrepreneurs and executives, it’s most certainly appropriate (and likely expected) that you would include charitable giving in your conversations.
As always, we are here to help. Contact me anytime to discuss your clients’ options for meeting their charitable giving goals, even in today’s challenging economic climate.
Charitable deduction legislation ebbs and flows. Proposed reform efforts come and go, resulting in the occasional change to the provisions of the Internal Revenue Code governing charitable giving. At the same time, popular charitable giving techniques evolve and grow over time, frequently creating new opportunities for your clients to support the causes they love.
For instance, donor-advised funds (DAFs) were first deployed as a charitable giving technique in the 1930s — long before their popularity ascended in the 1990s — and recently reached record highs.
Similarly, Qualified Charitable Contributions (QCDs) were codified in 2006 through legislation that initially approved the technique for just about a year, followed by several legislative extensions before QCDs were made permanent by the Consolidated Appropriations Act of 2016. And while QCD annual limits ($100,000 per person and $200,000 for couples) have remained constant in the past, those will change when indexed for inflation under the new laws passed at the end of last year.
Now, like then, legislation pending in Washington — if realized — may influence the techniques your clients deploy to meet their charitable goals.
Currently, contributions to DAFs by private foundations fall under the same rules as contributions to donor-advised funds by individuals. The funds are not subject to any particular timing requirements to be distributed to charities. Despite the lack of a formal pay-out requirement, the 10-year average aggregate pay-out rate from all donor-advised funds is a whopping 22.2%, and the 2021 aggregate pay-out rate was a record 27.3%.
In contrast, private foundations are subject to a 5% annual distribution rule.
Under the proposed legislation (see page 139 of the Treasury’s explanation document), while it would not affect contributions to donor-advised funds by individuals, contributions to donor-advised funds by private foundations would need to be distributed “by the end of the following taxable year,” and documented as such, to qualify for the 5% private foundation distribution requirement. Time will tell whether these proposed changes make it into law.
Tax deductibility of donations has changed with the times. If passed, another piece of in-process legislation would again reward charitable-minded tax filers who do not itemize, at least for tax years 2023 and 2024.
The Charitable Act, as it is known, would allow deductions of up to one-third of the applicable standard deduction for non-itemizers. As background, under the higher standard deduction passed as part of the Tax Cuts and Jobs Act of 2017, many donors who’d previously deducted their charitable donations lost that ability. Indeed, to the dismay of many nonprofits, tens of millions fewer households itemized their deductions in the years following the increased standard deduction, removing part of the incentive to make charitable gifts. The Charitable Act would strive to alleviate some negative impacts on charities.
Recent history shows that taxpayers respond positively to deductibility opportunities, with 42 million taxpayers taking advantage of the $300 “universal” charitable deduction offered in 2020 and 24% of those having gross income of less than $30,000. That opportunity was extended in 2021 but discontinued in 2022. Notably, polling has shown strong support for restoring the universal charitable deduction.
With potentially restored deductibility in the works — and again, it’s early in the process and not yet law — remember that SDF is here to help your clients organize their charitable giving through donor-advised or other charitable funds.
As the tradition of change continues for charitable giving, we will continue to be your source of smart, efficient and secure giving.
Charitable deductions and the vehicles that generate them remain on the IRS’s radar. For instance:
For nearly 50 years, we have partnered with a large network of wealth advisors, estate planning attorneys, tax planners and other advisors to help high-net-worth clients and families achieve financial planning objectives and charitable giving goals, while maximizing tax deductions.
If you’re interested in learning how we can help meet your clients’ financial planning and charitable giving goals in 2023, contact me at (858) 245-1508 or jrogers@sdfoundation.org.
On August 9, 2022, we awarded $838,704 in Opening the Outdoors grants to 24 nonprofit organizations that offer equitable access to outdoor spaces in San Diego County.
“San Diego Foundation is proud to once again support its partners committed to increasing community-driven efforts to enhance accessible outdoor space, encourage youth to learn more through hands-on education and create the next generation of environmental stewards in the San Diego region,” said Christiana DeBenedict, SDF Director of Environment Initiatives.
This year’s grantees will help address these inequities and enhance access to the outdoors throughout San Diego County.
Harvey McKinnon has been a fundraiser for over 40 years and is recognized as one of North America’s leading fundraising experts. His consultancy raises money for hundreds of nonprofits in Canada and the USA. He is a seasoned trainer who has delivered fundraising keynotes at conferences around the world.
A frequent master-class trainer, he has authored five books – most recently a third book on monthly giving: How to Create Lifelong Donors (2020). His best-selling book, The 11 Questions Every Donor Asks, is a major gift training manual for fundraising departments throughout the US and Canada. He also co-authored the #1 bestseller The Power of Giving, which has been translated into nine languages.
Harvey calculates he’s spent 100+ years on a variety of nonprofit boards. His company Harvey McKinnon Associates has offices in Toronto and Vancouver and works with dozens of nonprofits in Canada and the USA.
Harvey calculates he’s spent 100+ years on a variety of nonprofit boards. His company Harvey McKinnon Associates has offices in Toronto and Vancouver and works with dozens of nonprofits in Canada and the USA.
Gail Perry is an internationally recognized fundraising consultant and is considered one of the foremost experts in the field of philanthropy and nonprofits. Her company, Gail Perry Group, leads nonprofits to extraordinary fundraising and capital campaign results. As a philanthropy leader, keynote speaker, and author with more than 30 years’ experience, Gail is renowned for her positivity, expertise and insight.
Her bestselling book, Fired-Up Fundraising: Turn Board Passion into Action, is recognized as the gold standard guide to building successful fundraising boards. Gail has worked with organizations all over the country and Canada, leading them to multimillion dollar fundraising results. Gail Perry got her start in fundraising at Duke University and then went on to lead University of North Carolina’s Kenan-Flagler Business School.
A fundraising and community-building professional for nearly 30 years, Mark Stuart has devoted his career to helping donors realize their hopes, dreams and aspirations.
Since joining San Diego Foundation as President and CEO in May 2019, SDF has grown its assets to $1.4 billion. Under Mark’s leadership, SDF raised and deployed $67 million for COVID-19 relief efforts and in its most recent fiscal year granted a record $150 million.
During Mark’s tenure, SDF has launched a new strategic plan and vision for just, equitable and resilient communities, and has been named a Top Work Place by The San Diego Union-Tribune three years running.
Before joining SDF, Mark managed a staff of 64 and a budget of $14 million at San Diego Zoo Global (SDZG). He led SDZG’s first-ever comprehensive fundraising campaign, raising $530 million.
Mark serves on the Board of Directors for Certified Fundraising Executives International, the League of California Community Foundations, San Diego Regional Policy and Innovation Center and San Diego Symphony Foundation.
San Diego Foundation President & CEO Mark A. Stuart will welcome attendees to the first-ever San Diego Fundraising Conference and share what’s in store for the day ahead.
Let’s look at trends and predictions for fundraising in 2023 and ’24. The giving environment continues to change – and donors are changing as well.
We’ll review the strategies you need to focus on this year, what’s working – and what’s not working in fundraising today. Where are the opportunities? How do we appeal to today’s donors? What are they looking for, and what will make them respond?
Join us to take a ride through the events and issues on the philanthropic landscape both now and in the near future.
You have major gift prospects, but do you know how to bring up the idea of a potential gift? Don’t get stuck in endless cultivation – here’s how to move right into a Gift Conversation.
Gail will show you the path that will lead a donor from Discovery directly to an Ask Conversation. You’ll learn how to read your donor’s signals, and how to politely put an Ask on the table.
We’ll have some fun learning Power Discovery Questions that can light up your donor’s heart. You’ll have a chance to actually practice them, and you’ll see for yourself how they can unlock a donor’s enthusiasm and generosity.
Even more, You’ll discover how asking permission keeps your donor engaged and comfortable. These conversation-based asking and closing techniques will help you close more mega gifts!
Wisdom is more than the accumulation of wins and losses. It is found at the intersection of knowledge, good judgment, and experience.
The goal of the Fundraising Wisdom Project is simple: we asked talented fundraising leaders to consider what wisdom they might share with their much younger selves. What guidance would they want to provide to those who might be newer to our profession to put those careers on a brighter and better trajectory?
Come to the conference’s closing session to hear five-minute (or less) stories from our presenters and other wise leaders, who have more than 200 years of collected wisdom, to inspire and enhance your impact on the San Diego region.
Valerie Attisha serves as Vice President of Client and Community Relations at PNC Bank, one of the country’s largest banks and most charitable companies. In her role, Valerie oversees the bank’s charitable and corporate sponsorships, directs employee volunteerism and community engagement activities as well as leads its philanthropic investments in San Diego County. She is also responsible for building the bank’s visibility and brand in the region and fostering relationships with leaders from business, government, and the nonprofit sectors.
Valerie began her career at The San Diego Foundation where she established and led the Community Scholarship Program, which has become the largest provider of non-university scholarships in the region. Prior to joining PNC Bank in 2021, Valerie was a seasoned and respected fundraising professional and nonprofit executive – raising and facilitating gifts totaling $100M.
Valerie received her B.A. from the University of San Diego and her M.A. from California State University, Sacramento. Throughout her career, Valerie has been deeply committed to making meaningful and impactful change in the community through her involvement with organizations such as the San Diego Rotary (Club 33), the Junior League of San Diego, and the University of San Diego where she serves on both the National Alumni Board of Directors and the College of Arts and Sciences Advisory Board. Valerie also serves on the Boards of Directors of the San Diego Children’s Discovery Museum, San Diego Regional Chamber of Commerce and The Old Globe.
Valerie is a graduate of LEAD San Diego and has been selected a ’40 Under 40’ by San Diego Metropolitan Magazine and ‘Altruist of the Year’ by Modern Luxury Magazine. Recently, she was named a PNC Bank Market All Star.
Ingrid de Llamas is the Director of Philanthropy & External Relations for the Epilepsy Foundation of San Diego County where she works to provide funding for the fight against epilepsy. She has spent her career building fundraising and advancement programs for independent schools and other non-profit organizations. Ingrid is recognized and certified as a CFRE by the Association of Fundraising Professionals and as an IAP, International Advancement Professional – two of the highest certifications available to professionals in her field.
Ingrid serves the community as a Trustee for the Barrio Logan College Institute, a board member for the Association of Fundraising Professionals San Diego and is the administrator of a private foundation.
Former Board service includes the San Diego Public Library Foundation, Board Member for the Epilepsy Foundation of San Diego County, Living Rooms at the Border, a Casa Familiar project, Pasadena Symphony & Pops, Leadership Pasadena, Junior League of Monterey County and the Collective Voices Foundation.
She is a member of San Diego’s Rotary 33 and provides pro-bono fundraising counsel to EJE Academies. Among her service awards, Ingrid was named the Asian Business Association’s Member of the Year in 2018, the San Diego Public Library Foundation’s Volunteer of the Year for 2019 and was selected as a Hometown Hero by Giving Back Magazine. She was nominated as Outstanding Fundraising Professional for National Philanthropy Day in 2019 and 2022.
Ingrid is an eighth-generation Californian who loves bringing together different people and organizations for the betterment of the community.
Earning a Bachelor’s in History and Psychology from the University of Michigan in 2009, Muhi Khwaja didn’t know what to do until the summer before graduating. The Development Summer Internship Program at the University of Michigan sparked an interest in fundraising (development) as a career. After working with several nonprofit organizations, he earned his Master’s in Public Administration in 2013, from U-M, specializing in nonprofit management. Muhi has over 14 years of nonprofit work and fundraising experience as a one-person development team to a Chief Development Officer.
In 2016 he became a Certified Fund Raising Executive from the Association of Fundraising Professionals and in 2017 earned a Certificate of Fund Raising Management from Indiana University’s Lilly School of Philanthropy where he is also Adjunct Faculty.
Muhi serves as the Co-Founder of the American Muslim Community Foundation helping families distribute more than $10 million since 2017. AMCF serves as a the only national nonprofit organization focused on creating Donor Advised Funds, Giving Circles, distributing grants, & building endowments for the American Muslim community.
Muhi enjoys traveling, photography, riding his motorcycle, and hiking.
As Vice Chancellor for Advancement and the Executive Vice President of the UC San Diego Foundation, Ann holds the overall managerial responsibility for all university fundraising campaigns and transformational initiatives. In addition, Ann provides the strategy and facilitation the top-tier volunteer leadership for the Campaign for UC San Diego, which successfully concluded at $3 billion in 2022.
Ann joined UC San Diego after a 30-year career in the performing arts, most recently as Deputy General Director of San Diego Opera. A natural innovator of marketing and development programs, Ann helped propel San Diego Opera into an internationally recognized company, hailed for both artistic and fiscal excellence. Responsible for leading the revenue team and board development units, she created a long-range strategic plan and led the ongoing recruitment and leadership of the 60-member Board of Directors, one of the most highly contributing and respected Boards in the region.
Dr. Bill Stanczykiewicz serves as senior assistant dean for external relations at the Indiana University Lilly Family School of Philanthropy. Bill directs The Fund Raising School while also serving on the academic faculty, teaching in the bachelors, masters, and doctoral degree programs. Bill has been associated with raising more than $120 million over the last 25 years as a nonprofit executive director and board member. His hobbies include dating his wife, Carmen, who is a major gift fundraiser, and they enjoy talking fundraising while strolling along San Diego Harbor or watching the sunset from Point Loma.
Adrienne Vargas has more than 30 years of development experience. She started her career as a student at Fordham University where she called alumni asking for donations. She then worked in annual giving for Harvard University before becoming a development officer for Grossmont Hospital Foundation. After six years at Grossmont Hospital Foundation, Adrienne was recruited to join The San Diego Foundation, where she worked for 20 years in a variety of roles, including overseeing human resources, the volunteer program, the San Diego Women’s Foundation, and donor relations.
In 2017 Adrienne joined San Diego State University as the Associate Vice President of Development before taking on the roles Vice President for University Relations and Development and President and CEO of The Campanile Foundation in 2018. Since joining SDSU, philanthropic support for the university has increased from over $83 million in 2018 to $136 million in fiscal year 2022.
Fact: The average monthly donor will give 5 – 20 times more money than a single gift donor. Your organization needs more of them.
In this seminar, Harvey McKinnon will teach you how to start and grow a lucrative monthly giving program, or improve your existing one. You’ll learn how to avoid common mistakes and maximize your income. You’ll come away with techniques to promote donor loyalty, raise more money, and increase your organization’s financial stability. Harvey will illustrate these lessons with real-life examples and case studies that you can apply to your own organization.
Harvey has been called the “Master of Monthly Giving”. He has helped thousands of organizations raise billions of dollars in monthly gifts. He is the author of three of the only four books ever written on monthly giving. The first one, Hidden Gold, launched monthly giving programs globally. And his latest is: How to Create Lifelong Donors through Monthly Giving (2022).
Donor advised funds (DAFs) are one of the fastest growing vehicles for charitable giving.
Why are donors using DAFs instead of giving directly to other nonprofit organizations, and how are DAFs helping donors maximize their philanthropy? Learn from the latest data on how you can incorporate DAF donors into your fundraising strategies.
Your prospects and donors have needs. When you satisfy these desires, they will give you money, much more money.
For over four decades Harvey McKinnon has been looking at fundraising from a donor’s perspective. In this session he looks at the 11 questions every donor asks, and he shows you how to answer them effectively. His strategy is being used by universities, international development agencies, hospitals and other nonprofits, all over the world
In this session you’ll learn:
We’ve all been part of the “rubber chicken event circuit” – those sometimes dreaded, often dull events that run together in our minds. Do you even remember why the last rubber chicken dinner you attended was held? How did it benefit the cause?
Donors today want to make an impact and they expect to see how their investments are being used to make a difference. Many nonprofits fall into the trap of holding the same event over and over each year. They spend countless dollars at hotels, have the same speakers, same video program and often forget WHY people are there.
Ingrid de Llamas will share ideas, lessons learned and the importance of re-evaluating your event program to include goals, consistent messaging and an understanding of the purpose and true cost of holding events. In this session you will learn how to create events with impact to further the mission of your organization.
Fewer than half of nonprofits have boards of directors fully engaged with fundraising. Using data from BoardSource and interviews with successful nonprofits, this session reveals six research-based findings pointing toward practical steps you can take toward 100 percent board giving and fundraising.
Don’t miss this opportunity to gain strategic insights and tools to increase the lifetime impact of your supporters.
Discover how to maximize the lifetime value of your supporters through various campaign types. Learn about the essential elements of an effective stewardship strategy and how an all-in-one fundraising solution can unlock valuable donor insights. Gain practical knowledge on engagement strategies such as nurturing first-time supporters into repeat donors and engaging your recurring supporters at your next fundraising event. The Classy expert team will also discuss how to identify and cultivate your next generation of peer-to-peer fundraising leaders.
Krista Lamp is the Senior Director of Brand, Events, Communication for Classy, a GoFundMe affiliate and Public Benefit Corporation that enables nonprofits to connect supporters with the causes they care about. Classy’s giving platform provides powerful fundraising tools so nonprofits can convert and retain donors. Since 2011, Classy has helped nonprofits raise over $5 billion. Previously, Krista spent 10+ years at some of the nation’s top public relations agencies.
Elizabeth Ruikka is the Sr. Director of Demand Generation and at Classy. She is a strategic marketing leader with a decade of expertise across digital and owned marketing channels. Passionate about staying up to date with the ever-changing digital landscape, Elizabeth enjoys advising nonprofits on how to maximize the impact of their online fundraising strategy. During her tenure at Classy, she has developed a strong understanding of the unique challenges nonprofits face and is invested in their success.
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