Comments on: Charitable Giving: A Case of Bad Market Timing

By: kaitlyn142

kaitlyn142 — Mon, 29 Sep 2008 04:23:19 +0000

If you don’t mind a suggestion, something that you might consider while you look for a permanent place to contribute is micro-lending. Kiva.org is an excellent organization that gives small amounts to small businesses in third-world countries. The loan is paid back, and that way your money is doing good directly aiding people.

By: Kevin

Kevin — Fri, 26 Sep 2008 15:01:28 +0000

What makes you think the charity will sell it immediately and take the “loss”? Maybe they are holding on to some securities as well, hoping for a rebound, and thus more funds to use for their charitable purposes? If you have a charity in mind, just donate it already and quit worrying about it.

By: nickel

nickel — Thu, 25 Sep 2008 11:49:05 +0000

Flexo: Following up on Todd’s comment, you get the tax deduction either way, correct? Once the money is in the account, I thought it was (technically) donated, even if you haven’t disbursed it. Assuming that to be the case, there’s no harm in waiting for a recovery (though as others point out, most charities would love a smaller check now as opposed to a bigger check later). Regardless, this is a good lesson for your readers. Never expose funds that you might need in the short term to the stock market.

By: skiman723

skiman723 — Thu, 25 Sep 2008 10:27:12 +0000

Along this line, my company’s United Way campaign just started a couple of days ago. I have always preferred to direct my contribution to a specific charity instead of putting it in the United Way slush fund. However, this year after speaking with a friend and doing some research, I found that my local United Way (SE Pennsylvania) takes an 11.8% cut of my donation in the process. This year I’m skipping the United Way and sending checks directly to the charities.

By: CJ

CJ — Thu, 25 Sep 2008 02:25:31 +0000

I don’t mean making money for yourself. I’m more talking about getting into the mentality of “Well I’ve got $5000 for the charity but wouldn’t $10,000 be even better?”

That’s what I meant. Just go ahead and give it away. $4000 today, $5000 tomorrow, $10,000 in a decade. Just give it away already.

That’s just my thoughts. Either way, it was and still is a good gesture to set aside money for charity.

By: Todd

Todd — Wed, 24 Sep 2008 15:34:59 +0000

CJ -
I agree any organization will love to get $4000. Will they appreciate $5000+ more? Yes.

If you have earmarked this money for charity how will you run the risk of trying to make money? (I am assuming you mean for yourself) Yes you are making money (interest) but for charity. How is that a bad thing?

By: CJ

CJ — Wed, 24 Sep 2008 14:52:25 +0000

Oh well. You live and you learn. I put giving as a very high priority but I already know the few organizations that I like to give to.

As far as Todd’s suggestion, I disagree. There’s no need to wait to give the money. I’m sure some organization will appreciate the $4000 right now. Otherwise you run the risk repeating this process by trying to “make money” off of your charity fund.

By: Kyle

Kyle — Wed, 24 Sep 2008 14:51:39 +0000

Is there a balanced fund alternative? I like the idea of these mini charitable endowments, but they really are for long-term giving.

By: Todd

Todd — Wed, 24 Sep 2008 13:53:53 +0000

It sounds like you shouldn’t beat yourself up about that. Just wait until the market comes back and then you will be able to give more. Yes you forfit the tax write off for 2008 but you will get it eventually.