Cash is king for most charitable giving. But there are also other assets at your disposal to making a lasting difference with your philanthropy.
Here are three ways you can use non-cash assets to make a BOLD impact with your giving:
Give highly appreciated assets
If you own highly appreciated assets, such as stock or real estate, and are also planning to make a significant gift to charity, consider giving the appreciated assets instead of cash to your charitable fund at the Community Foundation.
Assets like appreciated stock can be sold by a charity for 100 cents on the dollar – no capital gains tax applies. That means your favorite charitable causes will wind up with more money to work with than if you had sold that same asset yourself and given the proceeds to your charitable fund at the community foundation or to another charitable organization.
Single asset, multiple gifts
If you want to support several charities at once and you a single large asset to give, you can use a Donor-Advised Fund at the Community Foundation to facilitate multiple contributions. When you transfer the asset to your Donor-Advised Fund, you get the tax benefits, the asset is converted to cash and then the proceeds are allocated as grants to several different charities of choice.
Don’t be afraid to think outside the box. Closely-held stock, real estate and even valuable collections can be excellent gifts to fuel your charitable fund at the Community Foundation. We can work with you and your professional advisor to facilitate a gift of an “alternative” or “complex” asset to your charitable fund at the Foundation. This is a great opportunity to maximize tax benefits as well as maximize the dollars available for your charitable giving.
The October meeting of the Community Foundation’s Professional Advisor Council explored the benefits, pitfalls and process for donating closely held business interests. To receive a step-by-step process for making this type of gift, contact Mark Kotler at 954-761-9503 or firstname.lastname@example.org.