The major stock market indexes are trading at record levels and federal tax policies remain unchanged.
This is the perfect time to consider making end-of-year charitable gifts.
Policy makers in Washington D.C. are considering introducing changes to the federal tax code that may decrease the tax benefits currently available for charitable gifts of appreciated stock.
While no one knows what the new tax code will include, we do know that the tax code currently provides incentives for making charitable gifts of marketable securities.
When you make a gift of long-term appreciated securities to a public charity, including the Community Foundation, you can:
- Claim a deduction equal to the fair market value of the securities.
- Claim a deduction of up to 30 percent of your adjusted gross income for the year.
- Potentially avoid any capital gain income on the appreciated value of the securities.
These benefits make the after-tax cost of a gift of long-term marketable securities more attractive than a cash gift.
With the stock market at record highs, this might just be the right time to make that charitable gift. However, each individual’s tax situation is different so remember to talk with your professional advisor to see what might be right for you.
No matter how you donate to charity this year, we’d love to help you with your charitable giving. At the Community Foundation you may establish a charitable giving fund that allows you to make a contribution during the year you would like the tax deduction while allowing you time to support the charities of your choice at a later date. Please reach out to the Community Foundation for Palm Beach and Martin Counties at (561) 659-6800 or visit www.yourcommunityfoundation.orgto get started.
Sheila Kinman, CAP® is the Vice President for Development at the Community Foundation where she helps donors design and fulfill their charitable giving goals. She is also a Charted Advisor in Philanthropy (CAP®), a designation that provides knowledge for guiding charitable individuals, businesses and foundations.