Donating Appreciating Investment Assets

Here’s How To Leverage Your Charitable Giving

Are you considering some year-end charitable gifts at least in part to capture the charitable tax deduction?  If so, consider giving an appreciated investment asset instead of cash and you may get more bang for your buck.

Here’s what we mean.  Let’s say you want to make a $5,000 contribution and you’re trying to decide if you should write a check or give shares of stock.  Both options result in essentially the same benefit to the charity, so what other factors should you consider?  There’s not a lot to consider with the cash option beyond the fact that your checking account balance will go down substantially.  However, Giving the stock would likely have minimal impact on your cash flow.  Moreover, you most likely paid far less for the stock than it’s worth today so it’s not really worth $5,000 to you.  In other words, if you sold it, you would be expected to pay taxes on the gain and will be left with something less than $5,000 in your pocket.  Best of all, assuming you have owned the stock for at least 12 months, the amount you get to claim on your tax return should be the same as if you give cash.

Because we are not tax professionals and are not here to provide tax advice, you need to consult your tax advisor before taking any action.  But, if gifting an appreciated investment asset makes sense in your situation, OHM can help facilitate the process.

Please contact the Open Hearts Ministry office at 269-383-3597 or email for more information.