Donating appreciated stock is one of the easiest ways to give more to causes you care about.
Why? Because donating stock directly to charity is one of the most tax-smart ways to give. Yet, it is often not well understood or widely used. According to a 2016 study by Fidelity Charitable, 80% of donors own appreciated assets, such as stocks, mutual funds or bonds, but only 21% of those donors have contributed these types of assets to charity.
Here are three reasons to consider a stock donation to Chabad Key Biscayne Jewish Center:
You can give more by avoiding capital gains taxes
By donating stock that has appreciated for more than a year, you are actually giving 20 percent more than if you sold the stock and then made a cash donation. The reason is simple: avoiding capital gains taxes. If you donate the stock directly to a charity, there’s no capital gains tax to pay. Plus, you are still eligible to deduct the full fair-market value of the asset you donated from your income taxes.
You can reduce future capital gains liability
If you have a stock you are holding on to for the long term, consider donating some of your appreciated shares and then buying new shares to reset your cost basis at the current, higher price. This will reduce your future capital gains tax exposure if the stock continues to grow in value.
It's easier than you think
Some people may not be interested in donating stock because they think it will require a lot of paperwork and phone calls. We take the hassle out of donating stock.
Use the button below to transfer stock easily and securely, and receive a tax deduction for the full value of the stock.
Or give us a call at 305-365-6744 to discuss your giving.