Hawai‘i Community Foundation
Professional Advisors


FALL 2022

Bright Spots in the Midst of Economic Challenges

Bear markets aren't much fun for anyone. But that doesn’t mean charitable giving commitments have to be put on hold. If your clients are like many donors, they are still looking for ways to support the organizations they care about that rely on their support to achieve their missions.

Remember, not every stock is down. It’s still incredibly tax-efficient to donate highly-appreciated stock to a fund at Hawai‘i Community Foundation (HCF). When you give appreciated stock held for more than one year (a long-term capital asset) to a donor-advised or other type of fund, instead of selling it outright, the capital gains tax is avoided. Plus, marketable securities are typically deductible at their fair market value, further helping your client’s overall income tax situation.

Don’t forget about the Qualified Charitable Distribution (QCD), either. If your client has reached the age of 70 ½, the QCD is an elegant and effective planning tool. You are still required to take Required Minimum Distributions (RMDs) from your IRA even in a down market, and the QCD can help offset this tax hit by allowing your client to direct up to $100,000 to a qualified public charity, including a field-of-interest fund or unrestricted fund at HCF.

This is also a good time to make sure your client’s estate plan is in good shape, including bequests they may wish to leave to a fund at the foundation so that the causes they care about can continue to be supported for generations to come. A bequest by way of a qualified retirement plan beneficiary designation is an especially effective tool to support your clients’ charitable intentions after they are gone. That’s because funds flowing directly to a fund at the community foundation from a retirement plan after their death will not be subject to either income tax or estate tax.

Hawai‘i Community Foundation can help. Contact Jen-L W. Lyman, Senior Director of Gift Planning and Advisor Relations, at (808) 566-5596 or jlyman@hcf-hawaii.org.