It’s the Perfect Time to Help Your Community

The Coronavirus crisis has decimated lives and livelihoods across the globe.  Charities are struggling to help the most vulnerable and are having a hard time keeping up, while many not-for-profits across the company are in precarious financial situations.   For example, there are now more than 36 million Americans unemployed; many of them without enough money for food or shelter.  The Food Bank network is distributing 100 times more food than normal, yet is currently receiving 50% less food from manufacturers.

Scores of charities across the country are sounding the alarm that they could go under if they cannot find alternative funding. Nonprofits large and small have shut down temporarily, cancelled essential fundraising events and watched helplessly as funds have dried up from both individual and corporate donors.  The reality is that many people who would normally donate are now in the need of help themselves.

Furthermore, even before the COVID-19 pandemic, donations to charity were declining.  20 million fewer households donated to charity in 2016 than did in 2000.  In the United States, the charity sector makes up for some 10% of the workforce; making it the third largest industry behind retail and manufacturing according to John Hopkins research.  Even as the economy starts to open up again and reports of potential vaccines are front page news, there’s deep concern that the contraction in giving to charity may last for years.

Fortunately, you readers of the DWM blog are generally in a financial position to make charitable donations and we expect that most of you do, particularly during fundraisers, giving days and at year-end.  We would like to encourage you to consider providing donations and/or your skills to a charity now.

The CARES Act signed into law on March 27th, provides incentives for giving.  Since 90% of taxpayers use the standard deduction, the CARES act provides a specific tax deduction in 2020 for up to $300 in cash contributions.  Furthermore, in 2020, you can deduct all of your contributions up to 100% of your adjusted gross income (normally 60% is the limit). Also, the CARES act eliminated Required Minimum Distributions (RMDs) for IRAs for 2020. However, if you are 70 ½ or older, you can take money from your IRA and make a Qualified Charitable Distribution (QCD) and, therefore, help the charity and not have to claim any income on the distribution.  Lastly, the CARES Act provided a $1,200 economic stimulus to taxpayers with incomes below certain levels. Some recipients of those funds, who don’t need it, are using that money for charity.

Another tax efficient way of giving are Donor-Advised Funds (DAFs), which we have spoken about before.  You fund DAFs and get tax deductions in one year and then “grant” the money to charities in future years.  This allows you to “bunch” your donations and to reduce income taxes in years when you are in high tax brackets. Furthermore, you can use cash for funding or appreciated securities and therefore eliminate the capital gains tax on the donated securities. Funds in a DAF can be invested and grow and there are no minimum distribution requirements.  DAFs are a great planning tool for both income tax and estate taxes.

DAFs have been stepping up grants during the pandemic.  Grants given in March 2020 from DAFs were 36% higher than March 2019.  Donor advised funds are really a sustaining factor at times like this because people have already irrevocably set this money aside for charity so at a time, like now, it can be used.

Here are a few other comments and ideas on how you might be able to help your community:

  • Support the arts. Across the U.S., institutions have closed their doors and many have had to lay off staff. The American Alliance for Museums estimates that museums are losing some $33 million a day and it predicts 30% of them will never reopen without help.
  • Don’t forget animals. Many animal shelters are facing reduced staff and volunteer support.
  • Donate blood. 13,000 blood drives were canceled in the first three months of 2020 resulting in 375,000 fewer blood donations.
  • Put your skills to work. Your organization may be putting together programs to help American families who are struggling. The Foundation for Financial Planning, for example, is raising $1 million and will be providing pro bono financial planning and advice to low-income workers and other groups. I’ve participated in that pro bono work and it is very fulfilling.
  • For those SC taxpayers, consider a donation to help “exceptional needs” students with dyslexia, autism, ADHD or physical and emotional needs. There are 90,000 exceptional students in SC, one out of 12 children. And donations to the ExceptionalSC.org, a 501(c)(3), provides a tax credit to SC taxpayers, up to 60% of their tax liability. As such, this amount is currently considered taxes for your federal tax return.

It’s the perfect time to help your community with your money and/or your skills.  Each of us have our favorite organizations and causes.  Please consider doing something now! In a time of significant need like now, it will definitely be appreciated.

https://dwmgmt.com/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Zoom – A Saving Grace During the Covid-19 Crisis

When Social-Distancing was first announced, a lot of people did not take it seriously. As the weeks went on, and we headed into March, we realized this Covid Crisis was not letting up anytime soon. Businesses were panicking, schools were moving to online classes, vacations were cancelled, and families were not recommended to go visit each other. Here at DWM, we were devastated by the news that it would be safer for our clients not to walk through our doors, as we love having face-to-face relationships. We are quite familiar with webcam applications that let you video conference with people, as we have used one for years with our clients around the US, but Zoom came into our horizon at DWM at just the right moment!

Zoom is a leading application software that specializes in online meetings, video webinars, virtual conference rooms, phone systems, and cross-platform messaging with file sharing abilities. Their online meetings are quick and easy to access from any type of device; phone, ipad, computer, with simple applications for each that enable quick use. Their video webinar tool allows you to host up to 100 video participants with interactive capabilities with emojis and chat options. Zoom’s chat feature is available in any package. This makes collaboration easier during meetings by having a chat box where people can silently communicate and even ask questions to the host without interrupting. The chat feature is great for team communication and saves time by having all messages related to the topic in one place. For more information, please visit the Zoom website!

We are grateful to have already experienced great Zoom meetings with some clients here. The video quality is very clear and the voice quality is exceptional. When in a Zoom meeting, there is a section where a participant can share their screen, showing other members what is on their computer. This is really neat and helps when discussing documents all together, like we do here at DWM! We have pulled up investment documents on one screen, shared it to the meeting, and everyone is looking at the exact same picture, every scroll and every mouse change! In the chat box, you can also share files there to where everyone in the meeting has access of opening it up individually and personally looking at it, with the option of saving it straight to someone’s personal computer. This is an easy tool that saves time by not having to email documents to people, just drop them in the chat box! These feature have really made a difference in the efficiency of our tele-meetings here at DWM.

Here are the steps to having an amazing Zoom meeting…

  1. Be on the lookout for an email from us at DWM with the Zoom information. It will look something like this…

Join Zoom Meeting
https://zoom.us/j/756525649?pwd=ZlpYV29qWWVxVk1Wdk4zc2F2REZqZz0

Meeting ID: 756 525 649
Password: 274689
 

  1. From there you will click on the ‘https//Zoom.us’ and it will ask you to download and run the Zoom application.
  2. Once you have the application open, it should direct you straight to our Meeting, if not, enter in the ‘Meeting ID’ shown in the email.
  3. Enter in the password we provided
  4. Enable your microphone and video camera to utilize our Zoom meeting to the fullest.
  5. Enjoy face-to-face conversation!

We are aware of some articles released recently exposing Zoom for issues regarding customer service, data-mining strategies and intruders in meetings. Zoom’s customer service has been deemed almost useless as Zoom has grown over 1000% since mid-February. They are trying as hard as they can to post resources and FAQ’s on their website to tackle their booming clientele with limited employees, when hiring is on the backburner during COVID-19. Their data-mining strategies with Linkedin and Facebook put them underfire. Zoom was linking user’s names and emails so they were able to be found on Linkedin if you had the Sales Navigator premium Linkedin package (mostly used for sales prospecting) and also sent that information to Facebook. Zoom has disabled these features. Lastly, Zoom had a huge issue with hackers joining public Zoom meetings and posting inappropriate content on the screens and chat, also known as ‘Zoom-Bombing.’ Zoom created password protection on meetings and a ‘waiting room,’ where every user has to be admitted in by the host, to prevent that, after the FBI started investigating the issues. These are only some of the issues that Zoom has claimed and reacted to, click here to read a full statement by CEO Eric Yuan.

Here are some tips of what DWM does, and what you can do to help make your Zoom meeting as efficient and safe as possible…

  • Operate Zoom on trusted Wifi
  • Password Protect Zoom Meetings
  • Keep an eye out for unrecognizable people in the ‘Waiting Room’ area asking to join
  • Closely watch for new articles and news regarding tips, safety and even flaws
  • Limit confidential information in the chat section of a meeting

Millions of people have downloaded Zoom as Covid-19 has unfolded, for different uses. Local dance studios are teaching interactive classes over Zoom, colleges are maintaining that face-to-face interaction between student and teacher on Zoom, bands are hosting live concerts and people are doing home workouts and yoga classes with the guidance of their instructor. One of the best reasons for Zoom during social-distancing is being able to talk to multiple family members at once and all feeling connected regardless of being in separate spaces.

Here at DWM, we believe that Zoom is going to be a ‘Saving Grace’ for us to meet with clients during this crazy time. While we are aware of some of some of the security issues Zoom is currently working through, we are comfortable and excited to use it with our clients with the safety precautions mentioned above. If you are not comfortable with Zoom, a speaker phone meeting will also do the trick, but face-to-face meetings help keep that personal relationship we all desire and strive for, successful. We are looking forward to seeing our favorite, familiar faces over Zoom in the upcoming weeks. Stay safe, and stay healthy!

https://dwmgmt.com/