Charitable giving

Get the most bang for your charitable giving buck

November 29, 2022

Cash

Benefits to the donor:

In-kind appreciated securities
Tax impact of donating cash versus appreciated stock

Key observations:

Illustration displays the tax impact of donating cash versus appreciated stock on the equivalent of a $10,000 donation. Appreciated stock is assumed to have increased in value from $5,000. The capital gains tax is displayed at the current 15% rate. If the stock is sold and then donated, the investor will owe a $750 capital gains tax. If the investor donates appreciated securities in-kind, the capital gains tax will not be realized.

Benefits to the donor:

Additional considerations:

In-kind real estate and other property

Additional considerations:

Effects on the donor of gifting assets, by asset type
The illustration displays the effects of donor gifting by asset type. Cash gifts receive an income tax deduction up to the amount of the gift, up to 60% of the donor’s adjusted gross income with a low complexity associated with making the gift. Appreciated securities held more than one year will receive a deduction of the fair market value of the securities, up to 30% of the donor’s adjusted gross income. In addition, capital gains tax is not realized and there are no transaction costs. The complexity associated with the gift is medium. For other appreciated property held for more than one year, the same income tax and capital gains benefits apply. The complexity associated with making the gift is high.
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