Strategic Giving: The Benefits of Donating Appreciated Stocks

As you update your annual financial plan, it's important to reassess your charitable giving strategies. For high-net-worth individuals, generosity is a key value, and being strategic with your donations can enhance both your philanthropic impact and tax efficiency. One potentially effective approach is donating appreciated stocks instead of cash.

Why Donate Stocks?

1. Increase Your Contribution: By donating stocks that have appreciated for more than a year, you can give up to 20% more than if you sold the stock and donated the cash. This is because you avoid paying capital gains taxes, allowing the charity to receive the full value of the stock.

2. Tax Advantages: When you donate appreciated stocks directly to a charity, you eliminate the capital gains tax you would incur if you sold the assets yourself and donated the proceeds. Additionally, you may be eligible for a charitable deduction based on the fair market value of the donated stock.

3. Portfolio Management: Donating appreciated stock can be a strategic way to rebalance your investment portfolio without incurring tax liabilities, allowing you to maintain your desired asset allocation.

How Tanner Wealth & FI Advisors Can Assist You

As Wealth Advisors we understand the complexities involved in charitable giving and are committed to helping you navigate these decisions effectively. Our team can work closely with you to fulfill your philanthropic endeavors in a tax-efficient manner through charitable giving strategies. While we do not provide legal or tax advice, we collaborate with your CPA and estate attorney to address complex issues you may not have considered.

By incorporating stock donations into your charitable giving, you can enhance the effectiveness of your contributions and potentially achieve greater tax efficiency. Our team is here to guide you through this process, helping to ensure your philanthropic goals align seamlessly with your financial objectives.

John Tanner, VP | Regional Leader | Wealth Advisor

FI Advisors, Inc.

913 N PATTERSON STVALDOSTA, GA 31601

229-232-8211

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