Consumerism Commentary - Latest Comments in A Case of Really Bad Timing

Re: A Case of Really Bad Timing

Eric Toya — Fri, 18 Jan 2008 15:22:09 -0000

Right, if the plan is to distribute the funds with the year, there is no benefit to using the Fidelity intermediary. Do you intend to make the donation anonymous? That would be one benefit. Otherwise, just send a check off to your charity of choice.

Re: A Case of Really Bad Timing

jim — Fri, 18 Jan 2008 07:09:50 -0000

I think that solution makes sense, let the $5k go perhaps until next year or even farther down the road. Ultimately you want the funds to appreciate (otherwise you would've contributed directly to the charity!) so give them some time.

You might want to forgo contributing to the fund in the first place for short term contributions.

Re: A Case of Really Bad Timing

Harlan Landes — Thu, 17 Jan 2008 19:00:35 -0000

It was a last year contribution, actually. It's a contribution to an intermediary fund I set up at Fidelity, so I got the deduction for the full $5,000, even though it hasn't been "granted" to an organization yet. When I made the contribution, I had the option of a money market fund or a variety of mutual funds. I chose the S&P 500 fund. Knowing that I intended on distributing the full $5,000 within the year, I should have invested that amount in a money market, more friendly to short-term holding.

I believe I have a solution that makes sense. I'll just leave this $5,000 in the account to grow over the long term, but I'll contribute more to the fund this year, with the intent of distributing that contribution instead.

Re: A Case of Really Bad Timing

Eric Toya — Thu, 17 Jan 2008 17:29:50 -0000

Was this a one time, this year only contribution? If you distribute the funds now, you have missed out on a potential tax loss, and the charity that will still benefit from you contribution benefits a bit less.

I agree with Jim. Don't be in a hurry to distribute the funds. Let it build a bit. Make another contribution next year. See where it is then.

Re: A Case of Really Bad Timing

jim — Thu, 17 Jan 2008 15:42:38 -0000

I think you should treat it like any investment account except that instead of selling you will donate it, so perhaps this 5000 should what you plan to donate in 2009? That way you don't let these swings affect you.