November Financial Professional Perspective: Corey Schmidt | InFaith Community Foundation

November Financial Professional Perspective: Corey Schmidt

Finding Balance: Using Appreciated Securities for Charitable Giving

During portfolio reviews with clients, one topic Wealth Advisor Corey Schmidt usually brings up is charitable giving.

A typical conversation starts with a suggestion to rebalance performing shares with underperforming ones. This leads to the topic of capital gains being triggered, which opens the door to options for potentially minimizing taxes. A charitable transfer will result in a tax deduction for the market value of the transfer, and the clients will bypass capital gains as well.

Corey knows some retired clients are concerned about spending assets, even for charitable purposes. He recommends they give appreciated securities to a donor advised fund at InFaith and use the cash they would have typically donated to buy shares to reestablish cost basis. Their charitable gifts are designated support to the charities and causes important to them.

Clients who experience a one-time increase in income are also well-suited for donor advised funds. Corey tells of a client who received a buyout when the company he worked for was sold. “We were able to talk about how giving more that year could impact them from a tax perspective,” Corey recalls. Additionally, by contributing a windfall to a donor advised fund can help clients avoid a charity’s expectation for ongoing large gifts.

“What it comes down to is a donor advised fund makes sense for anyone giving to charity,” Corey says. He likes telling clients that there is no minimum contribution requirement for InFaith donor advised funds. In fact, it was that advantage that motivated him to move his own charitable fund, which was held elsewhere, to InFaith a few years ago.

Corey suggests the best way for Thrivent Financial professionals to understand donor advised funds is to establish one. “Use it for your own giving, and then you can convey to your clients just how easy it is,” he adds.

Smaller Gifts, Larger Impact

Donating appreciated securities to a donor advised fund is especially appealing to Corey’s clients who support many charities with donations in the $250 range. “It changes the way they give,” he says. They can make a larger gift of stock and then direct smaller gifts to organizations that are not equipped to accept securities.

Corey believes people are even more charitable when they have a donor advised fund. “Once the money is in their fund, they can’t use it for personal needs. This allows them to really listen when charities tell their stories, and it opens their eyes to bigger things.”

Get Started. To learn more about InFaith or consult about specific cases, call our gift planners at 800-365-4172.