There are many ways to give. You can give Stock Instead of Cash, give Stuff in Addition to Cash, Real Estate Giving Works Too, Business Sales Represent the Greatest Savings.
Give Stock Instead of Cash
If you are writing a check for charitable contributions that is above $10,000, chances are you should consider talking to your broker about giving stock instead. A gift of publicly traded stock allows an individual to donate at fair market value and avoid the capital gains tax and it also allows your advisor to rebalance your portfolio. Generally, this approach allows for a 35% increase in giving.
Give Stuff in Addition to Cash
90% of our wealth is in our stuff. If you feel maxed out in your cash giving, the solution may be to give non-cash assets. This can include things like cars, trucks, boats, electronics, collectibles, precious metals, and even artwork. In many cases, we see people increase their giving by using assets they were going to sell or give anyway.
Real Estate Giving Works Too
It’s often overlooked, but real estate is a great gift: residential houses, commercial lots, farm ground, etc. The best part about giving real estate is that partial gifts are possible too. You can donate at fair market value and avoid capital gains with this kind of gift. Real Estate gifts work best when the value is $50,000 and up with no debt.
Business Sales Represent the Greatest Savings
Many business owners wait until year-end to complete the sale of their business. The business sale represents the greatest opportunity to maximize giving while minimizing tax. Like publicly traded stock, a portion of the business can be donated prior to the sale at fair market value, and capital gains tax avoided. Even if the sale doesn’t go through, the deduction is still good against ordinary income.