Problem to Solution: Creating Opportunity for Donors

Raising teenagers is not for the faint of heart. Raising teenagers in the age of smartphones demands full engagement, courage, and persistence.   

Recently, our freshman daughter has petitioned to have her phone in her room. She is supposed to turn it in at 9 pm each night and may have it again the following morning. She argued that she was the “only one” without her phone in her room at night, and she “has to have my phone for my alarm.” We did not bite at the “only one” argument, however, we did recognize she was struggling with waking up in the morning. We provided a simple solution: an alarm clock. It was nine dollars on Amazon and delivered the next day. She has done an amazing job of getting up on her own and getting ready in the morning. All she did was utilize the simple tool we showed her.   

As ministries work with donors in year-end, the solution may not be as simple as an alarm clock, but there are many tools available to provide efficiency, tax benefits, and solutions for donors. You can provide value and be a key partner to your donors by bringing new ideas and charitable strategies to the table, especially at year-end. Read on for a few simple solutions to use:

Mid & Major Donors  

• Donor Advised Funds (DAFs) – Use this tool to maximize and simplify giving. Donors can contribute cash, stocks, real estate, business interests, etc. into the fund. Then, donors recommend gifts to charities out of the fund. The DAF sponsor handles paperwork and administration and the donors receive one receipt at the end of the year. Read more about how they work here.
• Complex Assets – Ninety percent of America’s wealth is in assets other than cash, yet 80 percent of giving comes from cash. The real opportunity for donors to reach their generosity potential is helping them understand gifts of assets. For more information on sharing this opportunity, see our Complex Asset Guide. 
• Maximizing Gifts – In 2020, donors can make gifts to charity of up to 100% of their adjusted gross income (AGI), up from 60% in previous years. Donors can give up to 30% of their AGI with non-liquid appreciated assets. This is a unique opportunity for major donors!  

All Donors  

• Bunching – In 2017, the IRS doubled the standard income tax deduction. New tax laws make it advantageous for donors to bunch utilizing a Donor Advised Fund and maximizing the tax deduction benefit and give generously. Use this sheet to share with donors on how to utilize this strategy.
• $300 “Above-the-line” Deduction – For 2020, all taxpayers, even those who do not itemize deductions, can deduct up to $300 of cash contributions made to most public charities. Notably, contributions to a donor advised funds (DAFs) do not qualify. Read more about how the CARES & SECURE Acts affect your donors’ plans and key opportunities for them.

Be a resource to your donors. Make sure they know about all their options to be generous. God has richly blessed us and desires us to steward well what He has entrusted to our care. Support your donors in their endeavor to be generous. You may not know who needs that “alarm clock” tool that will be a solution as they journey on their path of generosity.