Charitable Gifts of Appreciated Stock – Will You Seize the Moment?

Right now is a unique opportunity for your charitable giving.  Why?

There are two reasons, most of us make our charitable contributions by the end of the year and also many of us own highly appreciated stock that could be subject to long-term capital gain taxes.

Donating appreciated securities instead of cash by the end of the year can be much more advantageous. Not only do you support your favorite charities, by selecting the right asset, your impact could go further, allowing you to give more to charity and potentially less to Uncle Sam.

When you make a gift of long-term appreciated securities to a public charity, including the Community Foundation, you can:

  • Claim a deduction equal to the fair market value of the securities.
  • Claim a deduction of up to 30 percent of your adjusted gross income for the year.
  • Potentially avoid any capital gain income on the appreciated value of the securities.

These benefits make the after-tax cost of a gift of long-term marketable securities more attractive than a cash gift.

With the end of year quickly approaching, this might just be the right time to make that charitable gift. However, each individual’s tax situation is different so remember to talk with your professional advisor to see what might be right for you.

No matter how you donate to charity this year, we’d love to help you with your charitable giving. At the Community Foundation you may establish a charitable giving fund that allows you to make a contribution during the year you would like the tax deduction while allowing you time to support the charities of your choice at a later date. Please reach out to the Community Foundation for Palm Beach and Martin Counties at (561) 659-6800 or visit www.yourcommunityfoundation.org to get started.

Sheila Kinman, CAP® is the Senior Vice President for Philanthropic Giving at the Community Foundation where she helps donors design and fulfill their charitable giving goals. She is also a Charted Advisor in Philanthropy (CAP®), a designation that provides knowledge for guiding charitable individuals, businesses and foundations.


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