{"id":2049,"date":"2017-08-22T07:28:00","date_gmt":"2017-08-22T14:28:00","guid":{"rendered":"http:\/\/springwaterwealth.com\/?p=2049"},"modified":"2020-03-11T23:59:13","modified_gmt":"2020-03-11T23:59:13","slug":"donating-investments-to-charity","status":"publish","type":"post","link":"https:\/\/springwaterwealth.com\/donating-investments-to-charity\/","title":{"rendered":"Donating Investments to Charity"},"content":{"rendered":"<div>Many of our clients give to charity and they do so in a variety of ways.\u00a0They give cash contributions, their time and energy (e.g. at the local library), their professional services (e.g. on a board of directors), their old vehicles (OPB loves to receive them), their physical labor (e.g. hiking trail maintenance), clothing they no longer wish to wear (Goodwill, among others), and in many other ways.\u00a0 The tax benefits of giving to charity vary, depending on the nature of both the gift and the charity itself.<\/div>\n<div><\/div>\n<div>Some of our clients choose to give to charity by donating their investments.\u00a0It is possible to give away a portion of your investments to a charity and receive an income tax benefit.\u00a0You can do it directly by giving stocks, bonds, exchange-traded funds and mutual funds.<\/div>\n<div><\/div>\n<div>Why do this instead of giving cash?\u00a0Well, if you sell securities that have appreciated in value, you may (depending on your situation) be taxed on the gain (sales price \u2013 purchase price) and those taxes could be 30% or more of the gain.\u00a0But if you give away the security itself, there is no tax.\u00a0So, you can give away more and receive a larger tax deduction by giving away appreciated securities instead of cash.<\/div>\n<div><\/div>\n<div>Here\u2019s an example.\u00a0Mary invested $10,000 in a mutual fund 10 years ago that is now worth $20,000.\u00a0She is in a 15% tax bracket for federal (long term capital gains) taxes and 9% for Oregon state income taxes.\u00a0Mary wants to give to her favorite local charity.\u00a0If Mary were to sell the mutual fund, she would pay $2,400 in federal and state taxes (24% of $10,000).\u00a0The charity would thus receive $17,600 ($20,000 &#8211; $2,400).\u00a0Mary would receive an income tax deduction of $17,600.<\/div>\n<div><\/div>\n<div>If instead Mary donated the mutual fund directly, her charity would receive $20,000 and Mary would receive an income tax deduction of $20,000.\u00a0We are ignoring some tax nuances that you should consider with your tax advisor should you decide to explore gifting strategies.<\/div>\n<div><\/div>\n<div>In a future post, we will discuss the use of &#8220;donor-advised funds&#8221; and how they can be an even more effective way to give to charity than a direct gift of a security.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Many of our clients give to charity and they do so in a variety of ways.\u00a0They give cash contributions, their time and energy (e.g. at the local library), their professional services (e.g. on a board of directors), their old vehicles (OPB loves to receive them), their physical labor (e.g. hiking trail maintenance), clothing they no [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"categories":[3,5,9,10,11],"tags":[34,66,107,132,136,140],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/2049"}],"collection":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/comments?post=2049"}],"version-history":[{"count":0,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/2049\/revisions"}],"wp:attachment":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media?parent=2049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/categories?post=2049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/tags?post=2049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}