Want to make giving even more joyful?
There is such joy in giving to a worthy nonprofit whose mission is in line with your values. And really, that’s the reason most of us give. For many, giving at year end is the last chance to get a tax deduction for the year, too. The vast, vast majority of donations are still cash donations, or “checkbook giving”. This is certainly the easiest and fastest way to give, but in most cases it is not the most tax efficient.
In my last blog, I talked about the benefits of giving from your IRA if you are older than 70.5 years of age. But there are other ways to give that benefit your overall bottom line. Giving appreciated stock that you have owned for more than 1 year actually allows you to donate more than 20% more than if you sold the stock and made a cash donation. The reason for this is simply avoiding capital gains…and you get to deduct the full market value of the stock up to 30% of your income. And with the stock market at record highs, your giving goes much further this year. Here’s an example from Merrill Lynch:
If you’ve owned a stock for a while. it can have a significant gain and tax bill if you sell it. But, if you donate the stock, you can use your cash you would’ve donated to repurchase it at a higher cost basis, setting your self up for reduced capital gains in the future while maintaining your stock portfolio. So, the benefits actually continue.
If you want to donate an appreciated stock to JPII Newman, it’s easy. Other people do most of the work. All you have to do is call your financial planner and initiate a stock transfer with these details:
Merrill Lynch, Pierce, Fenner & Smith, Inc.
402-496-5150
13321 California St Ste. 200
Omaha, NE 68154
Acct Name: St John Paul II Newman Center
DTC #: 8862
Acct #: 68102842
Or, you may want to consider donating to a charitable checkbook or a Donor-Advised Fund (DAF) at the Omaha Community Foundation or a DAF with another charitable organization recommended by your financial planner. That way, you can give to your favorite charities throughout the year with only one stock transfer. In a year where you have a higher tax liability/higher income, you can make a larger donation, get the full tax deduction, and use it over a few years to give to your favorite charities.
That’s how I do it. As my financial planner makes buys and sells in my account, we always donate an appreciated stock I want to sell anyway to my charitable checkbook at OCF. Then, I simply log on to my account and make donations throughout the year. It’s so easy! For more information or to open an account with OCF, click HERE.
Obviously, JPII Newman is on my list of donations. I hope it will be on yours, too!