March 2024 Newsletter:

All About Charitable Giving

March Updates:

1. Send Charitable Distributions From Your IRA

If you are age 70.5 years or older and regularly give to charity, ask us about how to make contributions to charity directly from your IRA! (It’s an especially great strategy if you are already taking Required Minimum Distributions!)

2. Already Doing Charitable Distributions From Your IRA?

If you give to local non-profits, we can arrange Charitable Distributions to go out during the Great Community Give so it increases your impact! Let us know if you are interested in doing this by April 1st! The Great Community Give is scheduled for April 17th this year!

3. Partnering with the Community Foundation

Hess Financial is now an investment partner with The Community Foundation of Harrisonburg-Rockingham! Because of our planning based approached to investments, we already discuss opportunities to use The Community Foundation for things like Donor Advised Funds and Endowments, but we are now able to help you facilitate and manage your gifts to The Community Foundation. If you already work with The Community Foundation, let us know!

exterior shot of Hess Financial in Harrisonburg home of Hess's CERTIFIED FINANCIAL PLANNER™

Charitable Giving At Hess Financial

In the spirit of charitable giving, I asked the planning team about planning opportunities when it comes to charitable giving (and what local non-profit they like supporting!)

Headshot of Kevin Flint, CERTIFIED FINANCIAL PLANNER™ at Hess Financial

Kevin Flint


“One of my favorite local non-profits is the Lindale Childcare Program. Both of our daughters attend there in either a preschool or after-school capacity. LCCP supports the development of the children they serve through a curriculum that is focused on learning but also keeping the students active and playing outside. My kids come home happy, dirty and worn out, just as they should be!”

Before making your next charitable contribution, consider consulting our planning team about the potential benefits of donating appreciated securities from a non-retirement account. By gifting securities such as stocks, bonds, or mutual funds that have appreciated beyond their purchase price to a qualified charity, you can sidestep paying capital gains taxes on those assets. This strategy allows you to preserve your cash for other purposes while still receiving a deduction for the entire value of the gift. Most organizations have the infrastructure setup to receive securities and our team can help facilitate the process with the receiving organization.

Headshot of Stephan Hess, CERTIFIED FINANCIAL PLANNER™ at Hess Financial

Stephan Hess


“I enjoy supporting First Step which is a home for people leaving abusive relationships and the Shenandoah Bicycle Coalition because of all the great advocacy they do.”

I love the idea of creating a financial legacy for the people or organizations that you care about. Your invested donations can potentially generate years of ongoing support or more. Such Donor Advised Funds are becoming quite popular. But what I like even more, is how I’ve seen families use such strategies to create a culture of giving for children and grandchildren. When future generations are tasked with important roles in the management or distribution of funds it fosters a sense of civic responsibility.

Headshot of Sara Kate Garman, Certified Public Accountant at Hess Financial

Sara Kate Garman


“If you share my passion for organizations like the Valley Alliance for Education, consider a DAF for scholarships. It amplifies impact and retains tax benefits, maximizing your contributions.”

If you’re passionate about supporting education, your Donor Advised Fund (DAF) can help. By donating appreciated stock, cash, or other assets, you not only enjoy a charitable tax deduction but also have the opportunity to create a scholarship tailored to your preferences. Whether providing general support or targeting specific criteria, such as institutions or demographics, you can make a meaningful impact. Additionally, being involved in recipient selection adds a personal touch.

Headshot of Derek Hess, CERTIFIED FINANCIAL PLANNER™ at Hess Financial

Derek Hess


“An organization that I’ve spent a lot of time with is Big Brothers Big Sisters of Harrisonburg-Rockingham County. I’m a current big brother volunteer and serve on their board of directors, so I definitely believe in the power of mentorship!”

If you’ve worked closely with a nonprofit organization, you may understand the pressure they’re under to bring in new and recurring contributions. It requires constant effort, but that’s also the nature of the charitable giving world. Endowment funds are becoming a popular way to support an organization by making a sizeable up-front gift that provides a sustainable and reliable income stream. Not everyone has the ability to make major gifts like this, but it can be a unique part of an estate plan for those looking to leave a lasting legacy for a cause they care about. It’s truly the gift that keeps on giving.

Headshot of Robyn Hill, JD and CERTIFIED FINANCIAL PLANNER™ at Hess Financial

Robyn Hill


“One of the many charities I enjoy supporting is Ten Thousand Villages. Helping artisans in developing countries establish businesses and earn a living wage has ripple effects that lead to long-term, sustainable improvements for their families and surrounding communities.”

If you give to charity, you have probably been asked to include them in your estate. One great thing about estate gifts is that knowing you won’t need the money for other things may let you do something bigger than you were comfortable with during life. Giving a percentage or just whatever is left after gifts to family can protect what your want to do for loved ones. And encouraging people to give to the same cause in lieu of flowers can add more support for the thing that matter most to you.

How To Harness The Benefits Of Donor-Advised Funds In Your Tax Planning

In this month’s blog, Kevin talks about Donor Advised Funds, what they are and how they can be used!