Current Gifts into a Donor Advised FundAs is the case with many families, there are times each year when Jim and Sharon focus their attention on gift giving. For years, they have created a gift list that includes family members, friends and loved ones. Last year, Jim and Sharon made an addition to their list and began including their favorite charities.
Jim: That came as kind of a shock. Our CPA started to talk about ways we could offset the capital gains tax bill. We told him we were planning on making charitable gifts. Our CPA advised us that if we gave some of the remaining stock before the end of the year, we could receive a charitable deduction that would help offset the capital gains tax on the stock we sold.
Sharon: We contacted TOP Jewish Foundation to discuss the best way to make a gift of stock. The gift planner explained the process and provided us with instructions that allowed our broker to directly transfer stock from our account to TOP's brokerage account.
Jim: That is what we decided to do. By transferring $80,000 in stock outright to TOP, we received several benefits. First, we avoided a large capital gains tax on that stock, and second, we received a charitable deduction. The deduction even offset all of the capital gains from the stock sale. We then created a Donor Advised Fund at TOP which allows us to recommend distributions from the proceeds of our stock contribution to our favorite charities at various times in the future.
Sharon: We are very pleased with the many benefits of our gift. And, we're delighted that we've been able to make a nice charitable contribution.
Is a current gift of a Donor Advised Fund right for you?
Making year-end charitable gifts, especially with highly appreciated property such as real estate and stocks, can be an excellent strategy to reduce your tax bill.
Please contact us if you think you have assets that would make a nice gift to charity. We would be happy to work with you to structure a gift that meets your needs.
*Please note: The names and image above are representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to click here to view a color example of your benefits.