The Value of Charity

by | Oct 26, 2014 | 0 comments

Looking to rebalance your portfolio? How do you contribute to something you feel passionate about? Jaime Zimmerman offers an attractive option.

We all have our favorite charities and non-profit organizations that we support and want to see succeed. Whether we give them money, our time or some of both, they are an important part of our community. While serving the underprivileged or championing an important cause, these non-profits depend on us to help.

Among many individuals, gifting appreciated securities like stocks, bonds or mutual funds is a popular option. It can be a simple way to help your favorite charity and provide a significant tax benefit as well. In addition, it may aid in rebalancing your portfolio while offering a more cost-effective avenue than donating cash.

There are often tax advantages you should consider. For example, if you were to sell appreciated stock and donate the cash, rather than the actual security, you would be responsible for the capital gains tax on that sale. Typically there is a 15% tax due on any gain if the security has been held more than 12 months. If held a year or less, the gain is subject to your regular income tax rate.

If, instead, you donate the security itself to the charity and let them sell it, there is no tax cost and they get the full benefit of the value of the gift. You get to claim a tax deduction for the fair-market value at the time of the gift, but check with your tax advisor about whether there are restrictions on what you can offset with respect to your adjusted gross income. Also, special tax benefits don’t apply to securities held less than one year.

There are other reasons to gift securities to a charity. It may give you an opportunity to readjust your portfolio or lock in a security’s greatly appreciated value. Perhaps a stock has become too great a percentage of your portfolio, and gifting it allows you to invest in other assets that help you to diversify.

Finally, if you are in the habit of giving monthly or weekly to an organization, like your church for example, you can eliminate the need to write out checks each week by making a one-time gift. This may help your personal cash-flow requirements, plus it saves time.

Gifting to a worthy charity provides a great way to give back to your community. All parties end up ahead, and you get the pleasure of helping a valuable cause.

Sampling of Community Non-Profits

• New Harvest Foundation

NHF channels charitable contributions exclusively to organizations working to promote gay, lesbian, bisexual and transgender (GLBT) rights, services, culture and community development.

• OutReach

Madison and south central Wisconsin’s lesbian, gay, bisexual and transgender community center.

• GSAFE (Gay Straight Alliance for Safe Schools)

A public benefit organization committed to safe middle schools and high schools for lesbian, gay, bisexual, transgender youths and all students.

• Perfect Harmony Men’s Chorus

Madison’s gay and gay-friendly chorus.

• StageQ

Madison’s queer theater troupe.

Article Tags

Ballet - Timeless - Banner
Advert 77
MGHA tournament

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Ballet - Timeless - Banner
Advert 77
MGHA tournament

Latest News

Cash & Olive’s Pub

Cash & Olive’s Pub

Jen O’Branovich and Courtney Sargent of Millie’s Coffee & Eatery in Cambridge have traded in the sunny space they formerly occupied in Galleria 214 to expand into a more Sconnie-style environment outside the main drag.

Pain Is In the Brain

Pain Is In the Brain

Nyle Biondi, MS LMFT, was one of the first out trans therapists in the state of Wisconsin and has devoted the past few years to helping others heal from chronic pain and health conditions.

Be Every Day

Be Every Day

A journey of self-discovery, acceptance, and love decades in the making. Follow along and be inspired at how Martha Marvel discovered her truth.

Queer Joy Book Club

Queer Joy Book Club

A Q&A with the Social Media Administrator, Jamie Butler, about a monthly meetup at the Goodman South Madison Public Library. The Queer Joy Book Club strives to be inclusive by considering books available in the Madison library system that have an e-reader option, an audiobook option, or even a graphic novel.

TRACE Your Transition

TRACE Your Transition

Madison-born Taylor Greene (he/him) has created the world’s first mobile application for transgender and non-binary individuals. TRACE is an acronym representing the app’s purpose: Transition, recording, and community engagement.

Latest News

VIEW ALL LATEST NEWS

Recent Posts

Ballet - Timeless - 300x300
Ballet - Love - 300x300
Division of the arts

Events

SUBMIT AN EVENT

VIEW ALL EVENTS

Jobs

SUBMIT A JOB POSTING

VIEW ALL JOBS

Popular Tags

Pin It on Pinterest