For more than nine years we’ve all been witness to growth in the stock market. This presents a unique opportunity to turn that growth into greater giving through Placer Community Foundation and increase your tax deductibility.
Instead of giving cash, which is basically what you’re doing when you write a check to your favorite charity, you could try a more tax-friendly approach: give stock or mutual funds that have gone up in value during your ownership over more than a year’s time. You get a deduction equal to the full value of the securities at the time of donation, rather than how much you originally paid for them, and never have to pay capital gains taxes on the appreciation (we advise you to always consult with your financial and legal advisors on these matters).
Giving appreciated stock you’ve held for more than a year can be better than giving cash.
Donors to Placer Community Foundation have gifted shares of appreciated stock to support a variety of causes in the community. They’ve also used the tax-deductible contribution to establish a personalized named fund such as a Donor Advised Fund.
If you’d like to transfer shares when the value reaches a certain level but want extra time to decide which charity to support, giving the stock to a Donor Advised fund makes good sense. You can take a charitable deduction when you give the shares to the Donor Advised fund, but then take time to decide which nonprofit organizations to support. Placer Community Foundation can help you identify organizations locally, nationally and abroad that are addressing causes close to your heart and can offer ways to leverage your charitable dollars for the greatest good. You can support special programs for at-risk youth, senior citizens, or other people in need; address animal welfare or environmental concerns; or support the arts.
Everybody wins when you make a gift of appreciated stock to Placer Community Foundation. Your stock market earnings translate into community impact, so you get a more rewarding return on your portfolio.