The Charitable Gift That Keeps On Giving

As the holidays are fast approaching and the season of giving is just around the corner, you may be wondering how you can make tax deductible contributions to the nonprofit organizations you admire and respect. One important but underutilized way that you can make a difference this year would be to gift your appreciated stock to a good cause. Gifting appreciated securities, that have been held over a long duration, can make the contribution you give far greater than if you would have just sold the shares and donated the cash instead. This in turn can have a bigger impact for the charitable cause and for you when filing your taxes at the end of the year.

So, what are the benefits of donating stock to charity? You will be making a huge difference for the organization. Whether it’s only one organization or several that you would like to make a charitable contribution to, you will find the process easier than you think. Depending on the type of organization, your contributions can be transformed into new equipment, new or upgraded technology, structural repairs or even additional manpower. Also donating stock can help with rebalancing your portfolio as well, and if you have held the stock for more than a year and it has appreciated in value, you can get a tax deduction equal to the stock’s fair market value. There will also be the added benefit of reducing and possibly eliminating your capital gains taxes. Be sure to speak with your financial advisor and tax professional to set up a donation strategy that will best fit your objectives.

This holiday season, why not make the most of your financial portfolio and give the gift of stock to your favorite nonprofit organization? It’s an incredibly easy yet hassle free way to donate to the causes that you deeply care about, while adding extra deductions for yourself as well. Your support will ensure that the work of your beloved nonprofit organizations will continue ahead for the foreseeable future.

By: Greg Goodlett 
Chief Investment Officer
Worth Advisors