Sheila Kinman, CAP®
, Senior Vice President, Philanthropy
, Community Foundation Tampa Bay Courtesy of Community Foundation Tampa Bay
As we get closer to year’s end, requests for support from organizations doing great work pour in. And there’s a good reason for that. In the U.S., the majority of all charitable giving happens in the fourth quarter. As generous donors consider which charities to financially support, they should also consider what is the best asset to donate.
The type of donation could make a big difference between money going toward taxes versus supporting charitable organizations. Many of us own highly appreciated assets that could be subject to long-term capital gains taxes. For example, that Amazon stock you purchased 12 years ago. By donating this Amazon stock, you may not be subject to long-term capital gains taxes and could get the charitable tax deduction. It’s a win-win, not only do you support your favorite charities, by selecting the right asset, your impact goes further, allowing you to give more to charity and potentially less to Uncle Sam.
While contributions of cash and publicly traded stocks are among the most popular, consider talking with your tax advisor about other outright donations that might make the most advantageous, tax-wise gift, including:
- Qualified charitable distribution from your IRA (if you are over the age of 70½)
- Real Estate
- Privately held business interest
- Life insurance
With the end of year quickly approaching, this might just be the right time to make that charitable gift. However, each individual’s tax situation is different, so remember to talk with your professional advisor to see what might be right for you.
No matter how you donate to charity this year, we’d love to help you with your charitable giving. At the Community Foundation you may establish a charitable giving fund that allows you to make a contribution during the year you would like the tax deduction while allowing you time to support the charities of your choice at a later date.
Please reach out to the Community Foundation Tampa Bay at (813) 282-1975 or visit www.cftampabay.org
to get started.
Sheila Kinman, CAP
® is the Senior Vice President of Philanthropy at the Community Foundation Tampa Bay where she helps donors design and fulfill their charitable giving goals. She is also a Charted Advisor in Philanthropy (CAP
®), a designation that provides knowledge for guiding charitable individuals, businesses, and foundations.