Three Charitable Giving Strategies That Anyone Can Use

By Kim Gonzalez via

All too often I come across articles on giving that feature complex strategies like charitable remainder trusts, conservation easements, and starting a foundation. While these strategies can work for the right situation, the average American doesn’t need them. Here are three charitable planning ideas that the average American can use.

Gift Appreciated Stock to Your Favorite Charity

People write checks to their favorite charity and get a tax deduction for 100% of the donation without even thinking. A better option is to gift appreciated stock that you have held for more than a year to the charity and take a tax deduction for the fair market value of the stock and avoid the capital gain. Neither you or the charity have to pay the capital gains tax!  It is a win for everyone except the IRS.  Here is how it works.

Annie is in the 25% Federal Tax bracket and owns XZY stock that she bought several years ago for $3,000.  The stock has appreciated to $12,000 and she no longer wants to hold the stock. If Annie’s capital gains tax is 15%, she will save $1,350 on the $9,000 gain and be able to give more to charity.

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