As president and
founder of Goodwin Investment Advisory, Tim Goodwin (03C) has
built a career helping people align their financial goals with their personal
values. A 2003 graduate of Berry College with a degree in finance, he launched
Goodwin Investment Advisory in 2004 after deciding he wanted to create "a
different kind of financial firm that upheld my values of integrity, honesty
and trust." Under his leadership, the firm has embraced a mission to lead people toward financial peace, independence and generosity. Tim is a steadfast
believer that giving, and giving wisely, should be part of every financial
plan.
Can you explain why donating appreciated stocks can be such a smart way to give to charity?
When you give
appreciated stock that you've held for more than a year, you allow the
nonprofit to sell it without paying capital gains tax, because as a 501(c)(3),
the organization is tax-exempt. If you were to sell that same stock yourself,
you'd owe tax on the appreciation.
By transferring the
stock directly to the charity, you avoid that tax entirely. Less money goes to
Uncle Sam, and more goes to the organization you care about—whether that's
Berry, your church, or another nonprofit close to your heart. It's one of the
simplest ways to increase your impact without increasing your out-of-pocket
cost.
Many people are familiar with cash donations, but fewer understand the benefits of giving stock. What's the biggest misconception you encounter?
The biggest
misconception is that people think they have to sell the stock first. In
reality, selling first triggers a capital gain, which reduces the amount
available to give. The smarter move is to donate the appreciated stock "in
kind," allowing the charity, or a
How do current IRS rules treat gifts of appreciated stock to qualified charities?
Most charities,
including Berry, can accept stock directly through a brokerage account
transfer.
You mentioned there are several reasons you personally use a donor advised fund. Can you share those?
There are five main reasons I love using a donor advised fund. First, it saves taxes. More of your money goes to the cause you care about instead of to the IRS.
Second, it simplifies tax preparation. Instead of tracking receipts from multiple charities, you only need to know how much you contributed to your DAF that year, which can be easily found on your year-end statement from your DAF provider.
Third, a DAF allows you to give anonymously if you wish. Perhaps you'd like to make a quiet donation to your church or avoid being added to a nonprofit's mailing list. A DAF gives you that flexibility.
Fourth, you can automate your giving. I have recurring grants set up for certain organizations, so my giving happens consistently throughout the year without me having to think about it.
And fifth, a donor-advised fund can actually amplify your generosity. Once you contribute to a DAF, the assets can be invested and allowed to grow tax-free while you decide where to give. That growth means your original gift can ultimately turn into a larger grant, enabling you to have an even greater impact over time.
When is the best time of year to consider a stock gift?
A lot of donors think of giving at year's end, and that's natural. It's when you're reviewing personal philanthropic goals, income and tax liability. But there's no reason to wait if you already hold appreciated securities. The sooner you give, the sooner the nonprofit can put your gift to work.
Personally, I fund my donor-advised fund quarterly so I can give throughout the year. It keeps me consistent, simplifies my tax planning, and ensures that causes like Berry can benefit right away.
How can donors coordinate a stock gift with their financial advisor or CPA?
If you have an advisor and long-term appreciated securities outside of retirement accounts, tell them you'd like to start giving stock instead of cash. Most financial advisors or a CERTIFIED FINANCIAL PLANNER™ professional can help you set up a donor-advised fund and handle the transfer paperwork . If you don't have an advisor, most donor-advised funds will let you open an account online for little or no cost. If you already have non-qualified investment accounts at Fidelity or Schwab, it's easy to add a charitable fund right alongside your other investments.
For someone new to this concept, what's the first step you'd recommend?
If you're currently giving cash and have appreciated investments in a non-retirement brokerage account, consider stopping the cash donations. Start giving from your stocks instead.
You can contact the charity directly to arrange a stock transfer, but I recommend setting up a donor-advised fund for simplicity and flexibility. Once it's open, you can contribute appreciated stock, receive your deduction right away, and give from it on your own schedule.
What final advice would you give to donors who want to make their giving both meaningful and tax-savvy?
Giving isn't just about generosity, it's about stewardship. There are smart, efficient ways to give that allow you to do more good without spending more.
And remember, the money you give through your donor-advised fund shouldn't just sit there. Don't wait until "someday." Nonprofits like Berry need those gifts now to fund scholarships, programs, and opportunities that change lives. When you understand the tools available, you can give more effectively and joyfully.
