Donating appreciated stock is one of the easiest and most tax-efficient ways to give more to the charitable organizations you love, including Rethos: Places Reimagined.
For many, the value of their investments has significantly increased since purchase. Perhaps a surge in the value of one of your holdings has left your portfolio unbalanced, or you’re looking to refocus on other investment categories. This is the perfect opportunity to align your investment strategy with your philanthropic goals by donating stock to Rethos.
Why Donate Stock?
Donating stock directly to Rethos is one of the most tax-smart ways to give. Despite the advantages, many investors overlook this opportunity. According to a study by Fidelity Charitable, 80% of donors own appreciated assets like stocks, mutual funds, or bonds, yet only 21% have donated these assets to charity. This means many donors miss out on significant tax benefits while nonprofits miss out on vital support.
Here are two reasons to consider making a gift of appreciated stock to Rethos:
You Can Give More
By donating stock that has appreciated for more than a year, you’re giving up to 20% more compared to selling the stock and donating the cash. Why? Because you avoid paying capital gains taxes.
The federal capital gains tax rate on long-term holdings is as high as 20%. By donating stock directly to Rethos, you can avoid this tax while still being eligible to deduct the stock’s full fair-market value from your income taxes (subject to IRS limits). This includes not only publicly traded stocks but also assets like restricted stock and cryptocurrency.
It’s Easier Than You Think
Many donors hesitate to give stock because they think it involves complicated paperwork or that Rethos may not be equipped to accept stock donations. However, donating stock to Rethos is simple and straightforward. Instructions for completing your stock transfer are available to help you complete the process quickly and easily.
If you have a donor-advised fund, you can also donate stock to your fund and then direct a gift to Rethos. This simplifies the process, as you only need to make one stock donation and file one form with your tax return. Simply designate Rethos as the recipient.
How to Get Started
To ensure your gift qualifies for a charitable deduction in the current tax year, initiate your stock transfer as early as possible. Different assets may take varying amounts of time to transfer. Always consult your financial or tax professional to determine the best strategy for your situation.
IMPORTANT LEGAL DISCLOSURE
The information provided is general and educational in nature. It is not intended to be, and should not be construed as, legal or tax advice. Rethos does not provide legal or tax advice. Please consult your tax advisor to determine the tax consequences of making a charitable gift to Rethos: Places Reimagined.
(EIN 41-1427970)
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