As of mid-March 2020, COVID-19 is now a world-wide pandemic. According to the World Health Organization (WHO), more than 145 countries around the globe are confronted with outbreaks of the virus, and here in the United States multiple communities now live under declared states of emergency.

Fundamental to philanthropy is the core belief that donors can and should be a force for good. Pandemics reveal the worst of the human condition–anxiety, fear, suffering and death–and have grave social and economic consequences that last well beyond the crisis period. As the impact of COVID-19 continues to unfold, Rockefeller Philanthropy Advisors is at the forefront of ongoing conversations with both large foundations and private donors addressing the evolving needs facing communities across the country. Rockefeller Philanthropy Advisory believe this goes beyond traditional notions of disaster philanthropy to emphasize resilience funding that builds the resilience of individuals, families, and communities to weather the crisis under conditions of extreme uncertainty, volatility, and complexity.

In partnership with Rockefeller Philanthropy Advisory (RPA), Vanguard Charitable is pleased to provide you with RPA’s insights for responding philanthropically to coronavirus crisis and specific charity recommendations across five crucial funding areas.

A shift in thinking could be good for nonprofits and donors alike

Donating assets that have appreciated in value² often means you won’t be hit with the associated capital gains taxes.³ You may be able to give more to charity as a result—sometimes 20% more.

Contributing assets that you may no longer have a use for can help rebalance, diversify, and strengthen your portfolio. A donation of non-public or closely-held stock in advance of a potential liquidity event, meanwhile, can be a good way to soften the tax consequences of a windfall.

Our most commonly contributed complex assets include private equity, closely-held stock, LLC and limited partnership interests, hedge fund interests, and insurance policies.

Not sure what you might give? Here are some guiding questions as you review your portfolio

1. Are you considering selling a business or business interest in the near future?
2. Do you have highly appreciated financial assets that you’re wary of selling for tax reasons?
3. Does your employer offer a buyback program for company stock?
4. Do you have insurance policies you no longer need?
5. Do you have a vacation property or second home you’re thinking of selling?

Want to learn more? Visit our complex assets page to see how our process works. Give us a call if you want to consult about a specific asset.