Economic turbulence, inflation concerns, and a general sense of financial instability have made 2025 very challenging for a lot of people. As you consider your charitable giving and how to support your favorite charities this year, take a moment to evaluate which assets may be best suited for your donations. In particular, the choice between giving cash or appreciated stock can have a meaningful impact on both your finances and the charities you support. The team at the Princeton Area Community Foundation is here to help answer your questions, including a few that are very common this year:
Should I give stock?
If you are concerned about preserving cash right now, then donating appreciated, publicly-traded stock can be a highly-effective strategy. By transferring long-term, marketable securities directly to a donor-advised or other type of fund at the Community Foundation, you avoid capital gains tax and may be eligible for an income tax deduction based on the fair market value of the securities. The Community Foundation, in turn, can sell the securities without incurring tax, maximizing the dollars available to support your favorite charities. Even in a down market, many investors still hold stocks that have appreciated over time, making this a win-win for both you and the causes you care about.
Should I give cash?
If your investment portfolio has declined significantly across the board, you may prefer to contribute cash this year. Doing so allows your investments time to recover, potentially increasing their value for future charitable gifts. Contributing cash to your fund at the Community Foundation allows you to organize your giving in one place, making it easier to gather tax information when April 15 rolls around again.
How can my donor-advised fund help in challenging times for our community?
Donor-advised funds offer flexibility for your charitable giving, particularly in unpredictable market conditions. By contributing to a donor-advised fund, you receive an immediate tax deduction and can recommend grants over time, allowing you to support your favorite organizations even when your personal finances are in flux. Many people like having a reserve of charitable funds that enables them to maintain consistent support for the causes they love, regardless of market ups and downs.
What else should I consider as I plan my charitable giving and support this year?
Giving strategically in uncertain times is important to help stabilize the charities in our community and allow them to continue to support people in need. The Community Foundation can help you formalize long-term commitments while also ensuring that immediate needs are addressed. Maintaining support for the organizations you care about ensures their continued impact, even when resources are tight.
Contact Us
For more resources and tools to navigate giving in today’s economic climate, visit our Navigating Uncertainty resource page.
The team at the Princeton Area Community Foundation is here to help you make a difference in our community as economic pressures mount. Please reach out to discuss the best options to achieve your charitable goals, even in a year as unpredictable as this one.
For more information, contact Marcia Shackelford, Chief Philanthropy Officer, at mshackelford@pacf.org.
