Last month we introduced the term DAF - Donor Advised Funds. Now let's talk stocks. Giving appreciated stock is a powerful way to make a year-end gift.
Why stock? Well, data shows that the S&P 500 is up 14% YTD. Stock values from 2023 have nearly doubled in under 4 years.
Here is some common stock vocabulary:
- Stock - an investment that represents an ownership share in a company
- Mutual Fund - an index fund is an investment in a group of stocks vs. a single stock
- Security - a catchall term for stocks, bonds, mutual funds and other types of investments you can buy and sell
- Capital Gains Taxes - a federal tax on profits realized by the sale of an asset
Stock giving is a win-win for us and for you.
Stock gifts benefit nonprofits. The average stock gift is over $10,000 compared to cash gifts. Donors who understand the tax savings and impact of stock donations are likely to be regular donors.
Stock giving benefits donors by saving on two types of taxes. When given directly to a charity, the donor avoids all capital gains taxes as well as state income taxes on capital gains. And donors receive a federal income tax deduction for the full present value on the stock, and sometimes a state deduction as well. NC is one of 30 states that taxes capital gains and offers a charitable deduction or credit.
We know you are committed to our mission. We are committed to you. Maximize your year-end gift to HD Reach by considering a stock gift before December 15th if you can. And remember to always consult your own financial advisor before making a final decision.
