Recent market volatility is a timely reminder that charitable planning is about more than performance—it’s about perspective.
Periods of geopolitical tension, rising energy prices, and shifting inflation expectations can create uncertainty for clients. Even when portfolios remain fundamentally strong, the feeling of instability can influence decisions around everything from retirement timing to charitable giving.
For professional advisors, these moments present an important opportunity: to help clients stay grounded, focused, and intentional.
What does this mean for your clients?
It means charitable giving doesn’t have to pause during uncertain markets. In fact, these moments often create opportunities for more thoughtful and tax-efficient planning.
Consider a common scenario.
David and Laura, both in their early 70s and recently retired, arrive for their annual planning meeting with a familiar concern.
“We’re not panicking,” Laura says, “but it’s hard to ignore what’s going on in the markets. It just feels unsettled.”
Their financial plan is still on track—but like many clients, they are hesitant to make decisions in an uncertain environment.
Rather than focusing solely on reassurance, you reframe the conversation.
“You’ve both been incredibly consistent in your support of local organizations,” you say. “How are you feeling about giving this year?”
They pause.
“We still want to give,” David says, “we just don’t want to make a mistake if the market gets worse.”
That hesitation is common—and it opens the door to strategy.
You begin with a simple reminder: not all assets are down. By identifying appreciated positions in their portfolio, you introduce an opportunity to give more efficiently. Contributing long-term appreciated stock to a donor-advised fund can help them avoid capital gains tax while supporting the causes they care about.
Just as importantly, it creates flexibility. They can make the gift now, secure the tax benefit, and take time recommending grants.
You also widen the lens.
Market cycles come and go—but community needs don’t pause. In fact, periods of economic strain often increase demand for nonprofit services, particularly for households already facing rising costs.
Finally, you introduce another strategy aligned with their stage of life: Qualified Charitable Distributions (QCDs). By directing distributions from their IRAs, they can satisfy required minimum distributions while avoiding income tax—continuing their charitable support in a simple, tax-efficient way.
By the end of the meeting, the conversation has shifted. Instead of focusing on uncertainty, David and Laura are focused on options. They move forward with a gift of appreciated stock and plan to explore a QCD later in the year.
Just as importantly, they feel confident that their charitable giving can continue—regardless of market conditions.
The takeaway for advisors
Even the possibility of a downturn can shape client behavior. But it can also create space for deeper conversations—ones that connect financial strategy with purpose.
With the right tools and perspective, you can help clients remain steady, intentional, and engaged in their philanthropy.
How The Erie Community Foundation helps navigate uncertainty
While many of these strategies happen within a client’s broader financial plan, the investment approach behind charitable assets plays an important role in supporting long-term giving.
At The Erie Community Foundation, our investment approach is built with that goal in mind. Rather than chasing the highest highs, our globally diversified portfolio is designed to help avoid the lowest lows—participating in long-term growth while helping cushion the impact of downturns.
That discipline has delivered results. Over the past 10 years, the Foundation’s pooled investment portfolio has generated returns exceeding 8% annually—outperforming its policy benchmark—while maintaining the stability needed to support consistent grantmaking.
This consistency is rooted in thoughtful diversification. The portfolio blends public equities for growth, private investments for enhanced return potential, diversifying strategies for risk management, and fixed income for stability and liquidity. Today, the portfolio remains closely aligned with long-term targets—approximately 70% equities, 15% diversifying strategies, and 15% fixed income and cash—ensuring it is positioned to navigate a range of market environments.
Equally important is the governance behind the portfolio. Cambridge Associates works in close partnership with the Foundation’s local Investment Committee to monitor market conditions, rebalance strategically, and maintain long-term discipline. This structure helps ensure that short-term volatility does not derail long-term outcomes.
What this means for your clients
A disciplined, professionally managed portfolio helps ensure their charitable giving remains steady and impactful—regardless of market conditions.