Smart Giving Strategies in Changing Markets

Giving is a deeply personal act, often rooted in gratitude, values, and a desire to make a difference. But when it comes to financial giving—whether to family, causes, or community—timing and strategy can make a meaningful difference. The state of the markets, whether bullish or bearish, offers different opportunities to give thoughtfully and tax-efficiently.

Giving When Markets Are Up: Leverage Growth Wisely

In a rising market, many individuals and families find themselves with appreciated investments or higher portfolio values. That growth can be harnessed for strategic generosity.

1. Donate Appreciated Securities: Instead of selling stocks and donating the cash, consider giving the securities directly to a qualified charity. This method can eliminate capital gains tax on the appreciated asset and still allow for a charitable deduction of the asset’s full fair market value (if held longer than a year). It’s a win-win: The charity receives the full value, and you avoid the tax hit.

2. Donor-Advised Funds (DAFs): DAFs have become increasingly popular. By contributing appreciated assets to a DAF, you can take an immediate tax deduction and then recommend grants to your favorite charities over time. This scenario gives flexibility—you can be generous now and thoughtful later about how and when to distribute funds.

3. Gift to Family from a Position of Strength: A growing portfolio can also mean you’re well-positioned to make financial gifts to children or grandchildren. In 2025, the IRS allows individuals to give up to $19,000 per person annually without using up any of their lifetime exemption. Larger gifts might also make sense, particularly when considering longer-term estate planning goals.

Giving When Markets Are Down: Turn Losses into Opportunity

Downturns can make giving feel counterintuitive, but these moments also offer unique planning opportunities.

1. Roth IRA Conversions with Gifting in Mind: A down market often means lower portfolio values, which can make Roth IRA conversions more attractive. Converting during a market dip allows you to pay taxes on a lower value, with the potential for future tax-free growth. This move can be powerful if you envision gifting to heirs or charities from your Roth account later.

2. Gifting Depressed Assets: You can gift investments currently down in value, and if they recover in the hands of the recipient, they enjoy the growth. This may work well when giving to children or grandchildren in lower tax brackets or as a long-term gift to a trust.

3. Tax Loss Harvesting Paired with Charitable Giving: Selling losing investments to capture losses (known as tax loss harvesting) can offset capital gains elsewhere. Pair this with a charitable gift from other appreciated holdings, and you may achieve a meaningful deduction while minimizing your overall tax bill.

Consistent Giving Through All Market Cycles

Some strategies are valuable in any market environment, offering stability and long-term benefits regardless of the market’s mood.

1. Qualified Charitable Distributions (QCDs): If you’re over 70½, you can donate directly from an IRA to a qualified charity (up to $100,000 annually). This can count toward your required minimum distribution (RMD) and reduce your taxable income. QCDs are especially beneficial for retirees who don’t itemize deductions.

2. Establishing a Charitable Trust: Whether markets are up or down, charitable remainder or charitable lead trusts can provide income to you or your beneficiaries and support a cause you care about. These trusts can help manage taxes and create a legacy of giving.

3. Make Giving a Family Conversation: Regardless of economic conditions, involving your family in giving decisions can build shared values and a sense of purpose. Consider establishing a family giving mission or letting children help choose where grants from a donor-advised fund go each year.

The Role of Planning

The best giving strategy is the one that’s aligned with your values, financial goals, and stage of life. Markets will always fluctuate, but your generosity doesn’t have to. Thoughtful planning allows you to give meaningfully in any environment.

At Parkshore Wealth Management, we help clients incorporate giving into their broader wealth strategies, whether through tax-smart philanthropy, family gifting, or legacy planning. Giving isn’t just a financial act; it’s a personal expression of what matters most. And with the right approach, it can be a lasting part of your financial legacy.

Schedule a complimentary, 15-minute chat with a fee-only, fiduciary financial advisor today to discuss your personal situation.

This material was written in collaboration with artificial intelligence (ChatGPT) derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.

Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor with offices in Granite Bay and Folsom, CA, and Lehi and Logan, UT. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.