The Dow Jones Industrial Average rose to 2016 highs on April 14 and was within 2% of reaching an all-time record high.
In 2015 the Dow was basically flat for the year and actually closed out with a small loss when compared to the close in 2014.
Over the past 12 months, the DJIA has ranged from a high of 18,322 to a low of 15,660 in February of 2016. Since then the Dow has rallied more than 2,000 points and could test previous highs in spite of economic uncertainty. Many people are expecting continuing market volatility with wide spreads in prices over the year.
From a gift planning stand point this volatility provides both challenges and opportunities. Major donors should consider funding gifts with highly appreciated stocks and bonds when prices are high. This is particularly true for wealthy individuals in the highest income and capital gains tax brackets. Charitable gift planning options should also be considered by individuals who are “under diversified” because of the appreciation of one- or two-star performers in their portfolios. In these instances, a charitable remainder trust can be particularly attractive by allowing the sale and reinvestment of the proceeds in a tax-free environment within the CRT.
Consider informing your donors about this time-sensitive opportunity to make gifts of securities. Sharpe Group offers several publications designed for the purpose of informing donors, fundraisers and advisers about these gifts. Click each title for more information:
- Giving Securities Booklet
- Your Guide to Effective Giving in 2016 Booklet
- Questions and Answers About Giving Securities Brochure