4 REASONS TO DONATE YOUR STOCKS TO MARILLAC ST. VINCENT
Connecting Communities | December 2021
In 2021, many people in our community benefited from the record performance of their investments like stocks and bonds. However, the appreciated value of stocks can be a burden if you choose to sell, since you will incur taxes. At this time of year, we ask you to consider donating appreciated stock to support the children, families and seniors in our care.
Here are four reasons you should give stock donations to Marillac St. Vincent:
1. You can give more
By donating stock that has appreciated for more than a year, you are actually giving 20 percent more than if you sold the stock and then made a cash donation. The reason is simple – avoiding capital gains taxes. The maximum federal capital gains tax rate is 20 percent on long-term holdings. But, if you donate the stock directly to a charity, there’s no capital gains tax to pay. Plus, you are still eligible to deduct the full fair-market value of the asset you donated from your income taxes, up to the overall amount allowed by the IRS. Donate stock to MSV here.
2. You can potentially reduce future capital gains
Any appreciation of a stock’s value confirms your belief in it, but it can also set the stage for substantial gains when you sell. So, consider donating some of your appreciated shares and then buying new shares to reset your cost basis at the current, higher price. This will reduce your future capital gains tax exposure if the stock continues to grow in value.
3. You can give your portfolio a health check
This is a great opportunity to review your investments’ gains and losses. It may be time to rebalance your portfolio to maximize its performance and minimize risk. Donating stock can give your portfolio the health check it needs. Implementing a donation strategy puts your capital gains to work funding your philanthropy.
4. You can donate stocks without headaches
Some people may not be interested in donating stock because they think it will require a lot of paperwork and phone calls, or that their chosen charity may not be able to easily accept a stock donation. Learn more here for all the information you need to donate your stock to Marillac St. Vincent.
As with all financial decisions, please check with your financial advisor, accountant, or other qualified individual prior to making any donations.
If you have questions, please feel free to contact Daniel Summins, Marillac St. Vincent Family Services Director of Development at daniel.summins@marillacstvincent.org.