Since most charitable giving is done during the holiday season (mark your calendars, #GivingTuesday is November 29th!), we wanted to talk with longtime Project 2 Heal support and CEO/Financial Advisor at My Money Coach LLC, Mike Ross CFP®. Mike offered some great advice about a crucial way to make your donation do as much good for you as it does for us.
Giving the Gift of Security (...or Securities!)
While making donations to charity brings both the satisfaction of helping further an important mission as well as potentially saving you money on taxes, did you know that many donors are leaving money on the table by simply writing a check to their favorite charity?
Since I'm not a tax advisor, I encourage you to speak with your own tax advisor to determine the best scenario for your personal giving strategy. However, I would like to point out how gifting appreciated securities works within the tax code and how it might be an effective tool to stretch your philanthropy dollars.
Let's Compare Two End-of-Year Scenarios:
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A gift of $50,000 cash
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A gift of $50,000 in appreciated securities
First, let's look at the similarities. Regardless of whether you give $50,000 in cash or $50,000 in appreciated securities, the charity receive $50,000 and you receive credit for making a $50,000 donation, which can reduce your tax liability. At first glance, the two methods are identical in that they provide the same contribution amount, same deduction from your net worth, and the same amount of money for the nonprofit to put toward their mission.
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