Legacy

Are You Using Stock Gifts?

I think most people default to dipping into their checking account when making a charitable gift. But there’s a smarter way to give that can make your donation go further and give you a double tax benefit.

When you make a gift of stock, you repurpose dollars that would go towards paying capital gains tax directly to Kingdom impact. Let me break down how this works.

When you sell appreciated stock, you would have to pay capital gains tax on any appreciation its earned. But if you instead give that stock directly to a nonprofit, like Focus on the Family, no capital gains tax is taken out. That means you not only get a full, fair-market value charitable deduction for the gift, but more funds make it to the programs you’re passionate about.

So, you can make a bigger impact, get a larger charitable deduction, and eliminate capital gains tax all in one gift.

You can even leverage this type of giving to rebalance your portfolio tax-free! By taking the cash you were planning to give and repurchasing the same type and number of shares you just gave away, you reset you cost basis without paying any capital gains.

It really is a smart way to give.

If you have questions or would like to discuss this fun way to support ministry, feel free to contact our Planned Giving team at [email protected] or 800-782-8227.

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