We know you want to make the most of your charitable giving in 2021. With the stock market now at record highs, the increased balance in your portfolio provides a great opportunity to share your good fortune. But before you write a check and move on, we would like to recommend a strategy that can help increase your giving and often save on income taxes. A low effort way to make your donation have more impact is to make a gift of your appreciated stock.
Instead of giving cash, if you have investments in stocks, bonds, and other securities (held for at least one year) you can donate directly from your portfolio. In fact, donating appreciated stock saves more taxes than selling the stock and donating cash, since there is no capital gains tax when appreciated securities are gifted directly to a nonprofit like the Catholic Community Foundation for Eastern SD. In addition, our Foundation does not charge donors a fee for stock transfers, making the deal even sweeter.
You may also leverage your gift by setting up a donor-advised fund with our Foundation. This charitable-giving tool enables you to make a charitable contribution, receive an immediate tax benefit, and then give this money to your favorite charities over a period of time. Even better, the Catholic Community Foundation does not currently charge a fee for assisting with stock transfers. Take the hassle out of charitable giving by having the CCFESD distribute funds from your donor-advised fund when the time is right. Qualified charities can include your parish, school, seminarian education, priest retirement, or other charities in your community.
We have many donors who already take advantage of this two-fold approach to helping the charities they are most passionate about. If you would like to learn more about gifting stock or setting up a donor-advised fund, contact the Gift Planning Officer in your area or call our Gift Planning Specialist Kelly Bartmann at 605-988-3777.