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 of guiding clients toward financial peace, independence and generosity. Tim is a steadfast believer that giving, and giving wisely, should be part of every financial plan. A proud Berry alumnus and new member of the Berry College Planned Giving Council, he shares why donating appreciated stock rather than cash can make a meaningful and tax-efficient difference for donors and the causes they care about.
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 before donating the proceeds.
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 donor advised fund—to handle the sale
tax-free.
How do current IRS rules treat gifts of appreciated stock to qualified charities?
The
IRS requires that the stock be held for at least a year and a day before you
donate it to qualify for long-term capital gains treatment. If you give it
sooner, it's treated as a short-term gain and taxed at your income rate.
Most
charities, including Berry, can accept stock directly through a brokerage
account transfer. But for many donors, it's easier to use a donor advised fund
(DAF) through a provider such as Fidelity Charitable, Schwab Charitable, or the
National Christian Foundation. With a DAF, you can transfer the appreciated
stock, take the deduction immediately, and then decide later when and where to
make your charitable grants.
You mentioned there are several reasons you personally use a donor advised fund. Can you share those?
There
are four 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 one year-end statement from your DAF provider.
Third,
a DAF allows you to give anonymously if you wish. Maybe you want to give
quietly to your church or avoid being added to a nonprofit's mailing list. A
DAF gives you that flexibility.
And
fourth, you can automate your giving. I have recurring grants set up for
certain organizations, so my giving happens consistently throughout the year
without my having to think about it. Together, those four benefits make a DAF
an incredibly practical and rewarding tool for anyone who gives regularly.
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, tell them you'd like to start giving stock instead of
cash. Most financial advisors or certified financial planners can help you set
up a donor advised fund and handle the transfer paperwork in minutes. 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 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 you have appreciated investments in a
nonretirement brokerage account, stop giving cash. 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.
