By donating stocks or mutual fund shares, you can support local conservation and gain a substantial tax advantage for yourself in the process.
The benefits of donating appreciated securities are many. Instead of selling those securities and writing a check for the proceeds, a charitable giving fund may be a more efficient way to make a donation.
When appreciated securities are contributed to a charitable giving account, the full fair market value can be deducted without incurring any capital gains liability. (This is in contrast to selling the securities outright and then donating the cash, which would then incur a capital gain.) The lower tax bill means more of your money will go towards protecting the Eastern Sierra you love.
Charitable giving funds are usually professionally managed by mutual fund companies and are offered through most financial advisors. A donor can usually decide when and to whom donations should be made from their charitable giving fund (although the specific donation policy should be investigated for each fund). The donor is under no obligation or timeline to exhaust the funds or to keep giving to the same organization.
Another important point to consider is that, in a charitable giving fund, the money can be invested and could potentially grow over time, tax-free. This scenario could allow you to donate a greater total amount to ESLT than the current value of your stocks today.
We recommend that you consult a tax or financial advisor to learn whether this type of giving is best for your situation. We’re also happy to help connect you with an advisor in our area – contact us online or call us today (760) 873-4554.