Donation of real estate, stocks, bonds, or mutual funds
As you consider how you might make your charitable gifts, don’t forget long-term appreciated property. This includes real estate, stocks, bonds and mutual funds that have risen in value and have been owned longer than one year. Giving these types of assets to the Foundation makes good sense from both a philanthropic and financial planning perspective. Consider:
You may deduct the full, current value of the asset, not just what you paid for it.
You bypass any capital gains tax you would owe if you sold the assets.
When you itemize, you can claim any excess deduction amounts over five additional tax years.
You conserve your cash for other purposes. You may even want to repurchase the same asset with a new, higher cost basis.
You make a wonderful gift to the Foundation.
Benefit from losses
If you own securities that are worth less than you paid for them, consider selling them and giving the cash proceeds to the Foundation. You are then entitled to a deduction for the amount of your cash gift while also reporting a loss for tax purposes. This may result in tax deductions that total more than the current value of the investment.
