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A Case Study in Charitable Planning During Market Volatility

Market uncertainty has a way of shifting client conversations. Even when portfolios remain solid, the tone often changes—questions become more cautious, and decisions feel more deliberate. For advisors, these moments aren’t just about reviewing performance. They’re an opportunity to help clients stay focused, grounded, and intentional.

Charitable giving is often part of that conversation.

When Uncertainty Shapes the Conversation

David and Laura arrive for their annual planning meeting with a slightly different mindset than usual. Recently retired and in their early 70s, they’ve always taken a long-term approach to financial decisions. Still, the current market environment is hard to ignore.

“We’re not panicking,” Laura says, “but things just feel unsettled.”

It’s a familiar sentiment. Even when financial plans remain on track, uncertainty alone can create stress. Market headlines, volatility, and broader economic concerns often weigh on clients’ confidence, regardless of their actual financial position.

As you walk through their portfolio and estate plan, the numbers confirm what you expected—their strategy is still working. Nothing about their long-term plan needs to change.

But this moment calls for more than reassurance. It’s a chance to reframe the conversation.

Shifting the Focus to Intentional Giving

“You’ve both been incredibly consistent in your charitable giving,” you say. “How are you feeling about that this year?”

David pauses. “We still want to give,” he says, “we just don’t want to make a mistake if things get worse.”

That hesitation is common. In uncertain markets, clients rarely want to stop giving altogether—they just want to move forward with more confidence.

Rather than focusing on what’s changed, you begin by highlighting what hasn’t.

“Not all stocks are down.”

You point to a portion of their portfolio that has continued to perform well over time. These appreciated assets present a valuable opportunity. By contributing long-term appreciated stock to a donor advised fund, David and Laura may be able to avoid capital gains tax while supporting the organizations they care about.

Laura leans in. “So that still makes sense right now?”

“It often does,” you explain. “And it gives you flexibility. You can make the gift now, receive the tax benefit, and take your time deciding where the funds go.”

The tone of the conversation begins to shift. Instead of focusing solely on uncertainty, they’re now thinking in terms of options.

Keeping Community Needs in Perspective

There’s another important piece to consider.

“Market cycles come and go,” you add, “but community needs don’t pause.”

Periods of economic strain often increase demand for nonprofit services. Rising costs, inflation, and financial instability tend to affect vulnerable populations first, putting additional pressure on local organizations.

A community foundation can help connect donors to those evolving needs. With local insight and established relationships, it becomes easier to ensure that charitable dollars are making a meaningful impact—even in uncertain times.

For David and Laura, this perspective reinforces why giving remains important, regardless of market conditions.

A Timely Strategy: Qualified Charitable Distributions

You also introduce a strategy they haven’t yet explored.

“Because you’re both over 70½, we should look at Qualified Charitable Distributions from your IRAs.”

You explain how a QCD allows them to transfer funds directly from their IRA to a qualified charitable organization, satisfying required minimum distributions while avoiding income tax on those amounts.

For clients in this stage of life, it’s a straightforward and effective way to continue giving—especially when they’re looking to preserve cash flow or reduce taxable income.

“You can direct QCDs to certain types of funds at the community foundation,” you note. “While they can’t currently be used to fund donor advised funds, they can support broader charitable priorities that benefit the community as a whole.”

It’s another way to keep their giving strategy active without adding complexity.

Moving Forward with Confidence

By the end of the meeting, David and Laura feel more at ease. The uncertainty hasn’t disappeared, but it no longer feels paralyzing.

They decide to move forward with a gift of appreciated stock to their donor advised fund and plan to revisit a QCD later in the year. Just as importantly, they leave with a renewed sense of clarity—charitable giving doesn’t have to stop simply because the market feels uncertain.

Situations like this are becoming more common. Even the possibility of a downturn can influence how clients think and act. But with the right approach, these moments can lead to more thoughtful planning and stronger long-term outcomes.

A community foundation can support these conversations at every stage, offering practical strategies, local expertise, and a steady perspective—no matter what the market is doing.