Donating stock can be one of the most tax-wise ways to give to a charity. Here are five reasons to consider donating stock to our Club this year.
- Donating stock is easy. Our Club is set up to receive stock donations. Instructions can be found on our website, or feel free to call us directly and we can provide you with the information. In many circumstances a stock transfer simply requires a call to your financial advisor to make the request. It is an easy process for you, your financial institution, and our Club.
- You can give more. By donating a stock held one-year or longer directly to charity, your gift will actually be larger as compared to selling the stock outright and giving the remainder to charity. Why? Because by donating the stock directly to the charity, you avoid the capital gains taxes due, resulting in a larger gift. You may be able to deduct the full value of the stock gift from your income taxes if you itemize.
- Reduce future capital gains. Professor Russell James of Texas Tech University loves to share an idea on gifting stocks that you do not want to sell. If you don’t want to reduce your stock holding but you want to make a charitable gift, James encourages you to make the stock gift to your charity anyway and then use the cash you would have otherwise donated to re-purchase the same stock you just gifted—thereby wiping out all your appreciation/capital gains liability. This also increases your cost basis on that stock from that day onward. Ultimately when you do sell your stock down the road in retirement, you will owe less in taxes since your cost basis is higher.
- Rebalance your portfolio with a gift of stock. Often stock portfolios can get out of balance as some stocks outperform others. When you are rebalancing your portfolio and you need to reduce a portion of one stock, consider gifting some of it to charity. By implementing a stock gifting strategy, you will put your gains to work by supporting the charities that you love and avoid capital gains taxes. Plus, you get the benefit of an income tax deduction if you itemize.
- Help kids in your community. Finally, and most importantly with a gift of stock to our Club, you are helping kids and families in your community. Donors like you help us create a safe environment, high-quality programs, and unique experiences for so many kids. With your generosity, we are building great futures for those who need us most.
Jay is the founder and CEO of Launch Legacy Consulting, LLC. He has over twenty-six years’ professional experience, sixteen in the financial services industry as a financial/insurance advisor for individuals, families, businesses, nonprofits and school systems.
Disclaimer: This communication does not constitute legal, tax, or financial advice, which we do not provide. Please consult professional advisors concerning the legal, tax, or financial consequences related to your charitable planning.
A legacy gift is a way for you to develop a long-lasting positive impact on Ocoee Region youth. Often called planned giving, your legacy gift helps ensure future generations of youth will have the programs, resources and guidance to help them achieve academic success, grow in character and citizenship, make healthy life choices, and foster the creativity and skills they need to reach their full potential. To learn more about Legacy Giving options, explore our Great Futures Legacy Giving Society or call 423-559-8299 today!
