We’ve been working to strengthen our community by connecting fundholders and nonprofits for 40 years. In that time, we’ve learned a lot but we don’t pretend to know everything. What we can tell you is very few organizations are as plugged into the local landscape as the Omaha Community Foundation. That intimate knowledge forms the way we work and gives us a unique perspective from which to scan the horizon for what may be coming next.
So, what do we see when we peek into the future of philanthropy in our community? Here are a few items we’re keeping an eye on and think you should too.
Donor Advised Funds (DAFs)
Donor Advised Funds (DAFs) will continue to be one of the most popular philanthropic vehicles and are just one of the philanthropic fund types we offer at the OCF. When you contribute to an OCF DAF you are eligible for an immediate tax deduction, and you receive one tax receipt. Your contribution is invested based on your preferences, so it has the potential to grow tax-free while you decide which nonprofits to support. You decide the timing of your grant recommendations to nonprofit organizations. Through a DAF, giving is made easy.
At the Foundation we accept many types of assets as gifts into DAFs. Our most popular gift is publicly traded securities or mutual funds. For gifts of publicly traded securities or mutual funds held long term, donors enjoy a double benefit of an immediate income tax deduction and avoidance of capital gains tax on appreciated values. DAFs will continue to be a topic of conversation in Washington D.C. in 2022. Debate over legislation introduced by Senators Angus King and Chuck Grassley last year aimed at forcing quicker DAF disbursements will continue.
Tax Changes Impact on Giving
At OCF, we monitor how policy changes might impact philanthropic giving. There are several legislative proposals in Washington that we are keeping an eye in 2022, including a comprehensive retirement bill, and legislation that would increase tax rates, including an increase of the capital gains tax. While there is uncertainty as to how this will play out in Congress, we know that philanthropic giving will continue to be one of the items you consider as a part of your overall tax strategy and financial planning goals.
Impact Investing
In 2020, OCF launched the Community Loan Fund with the goal of accelerating positive social outcomes in our community through impact investing. Nationally, impact investing is a growing model of investment, and the Foundation is excited to expand our local model even more this year. Unlike traditional grant-based philanthropy, this Fund makes impact investments structured as flexible, affordable loans that help local, eligible nonprofits bridge funding gaps and support community programs to drive greater impact. To date the Fund has invested $1.8 million locally to advance the important work the nonprofits investees are doing every day: building affordable housing, creating jobs, and supporting small businesses. OCF fundholders may invest in the Fund with their OCF DAF.
Stock Market
JP Morgan, Barron’s, and Goldman Sachs are forecasting the S&P to eclipse 5,000 by the end of the year. A strong stock market usually translates to a strong year in philanthropic giving. No matter what the outlook, our Donor Services team recommends putting a plan together to properly structure what giving looks like to you. We can provide you with details on programs, budgets, goals, and use of funds for specific local nonprofits. Or, if you have specific causes that interest you, we’ll help you to identify nonprofits working in those areas and share one of our current reports that highlight need in our community. If you want to give locally, our team can assist in helping your philanthropy make the greatest impact possible.