As is the case with many families, there are times each year when Jim and Sharon focus their attention on gift giving. For years, they have created a gift list that includes family members, friends and loved ones. Last year, Jim and Sharon made an addition to their list and began including their favorite charities.
Sharon: Years ago, I inherited stock from my grandmother. Earlier this year, we decided to sell some of the stock. After we sold the stock, our CPA told us we would need to pay capital gains of nearly $120,000 from the sale.
Jim: That came as kind of a shock. Our CPA started to talk about ways we could offset the capital gains tax bill. We told him we were planning on making charitable gifts. Our CPA advised us that if we gave some of the remaining stock before the end of the year, we could receive a charitable deduction that would help offset the capital gains tax on the stock we sold.
Sharon: We contacted the Foundation to discuss the best way to make a gift of stock. The gift planner explained the process and provided us with instructions that allowed our broker to directly transfer stock from our account to the Foundation's brokerage account.
Jim: That is what we decided to do. By transferring $80,000 in stock to the Foundation, we received two benefits. First, we avoided a large capital gains tax on that stock, and second, we received a charitable deduction. The deduction offset all of the capital gains from the stock sale. We are very pleased with the double benefits of our gift. And, we're delighted that we've been able to make a nice charitable contribution.
Is a current gift right for you?
Making year-end charitable gifts, especially with highly appreciated property such as real estate and stocks, can be an excellent strategy to reduce your tax bill.
Donors can make outright gifts to one of the Foundation?s endowments or use the gift to open a Donor Advised Fund. Click here
to learn more about Donor Advised Funds.
Please contact us
if you think you have assets that would make a nice gift to charity. We would be happy to work with you to structure a gift that meets your needs.
*Please note: The names and image above are representative of a typical donor and is not an actual donor to our organization.