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Whenever you give money to your favorite charities, you experience the dual joy of helping others while receiving healthy tax exemptions yourself.

Most people donate money by sending cash from their checking accounts—but we would like to suggest a much “more excellent way.”

You can achieve more giving impact by donating appreciated securities—such as stocks, bonds, and mutual fund shares—instead of sending cash. Do so allows you to make larger gifts, pay lower taxes, improve your cash flow, and simplify your giving for a multi-dimensional win.

The key is to donate such assets before selling them.

This can be done by 1) establishing a Donor Advised Fund (DAF), 2) transferring your appreciated stocks to the DAF in your name, and then 3) liquidating the shares within the account for later gifting to charitable causes.

In other words, by giving $10,000 worth of stock shares you bought for $2000 years ago, instead of gifting the same amount in cash, you can still get a $10,000 tax deduction, but you’ll bypass capital gains tax exposure on the $8000 you gained from that stock.
Here are some of the many benefits you can reap from using this approach:

• Eliminate capital gains tax on the donated stock.
• Give more by raising your client’s giving capacity by eliminating current or future tax exposure.
• Re-balance your client’s portfolio tax-free.
• Improve your client’s cash flow through these savings—allowing them to increase further charitable deductions.
• Deduct now / grant later by receiving a deduction this year and gifting it over time.
• Leverage your time—one gift of securities can easily support multiple charities.
• Eliminate tax hassle by consolidating all receipting under one charity within Capstone.
• Manage giving online from any device to check fund balances and recommend grants.
• Help clients stop writing checks to charity using post-tax dollars.
• Send checks to your client’s investment portfolio instead of writing checks to charity—and reset your cost basis for tax-free rebalancing.
• If you still like the stock you donated, repurchase it right away for a higher cost basis and lower future tax exposure.
• Give the winners and sell the losers by donating appreciated stocks, ETF’s, or mutual funds whenever you rebalance their portfolio for tax-savvy stewardship across all market cycles.

Please contact us for further details:

Capstone Legacy Foundation
900 West Valley Road / Suite 203
Wayne, Pennsylvania 19087
Tel: (610) 688-8890
info@capstonelegacy.or