MY SITE
  • Homepage - Peninsula Community Foundation
  • About
    • Board of Directors
    • Connect
    • Financials
    • News
    • Partners
  • Impact
    • Brink Impact Fund
    • Children's Holiday Fund
    • COVID 19
    • Give Local 757
    • Grants
    • Impact 100
    • Leadership Society
    • Legacy Society
    • PCF Initiatives >
      • Early Childhood
      • Homelessness
      • Neighborhoods
  • Scholarships
  • Funds
    • Agency
    • Corporate
    • Designated
    • Donor Advised
    • Employee Assistance
    • Legacy >
      • Types of Funds
    • Aug 2022 - Professional Advisor Newsletter >
      • BACK TO BASICS: REMINDING CLIENTS ABOUT WILLS, TRUSTS, AND CHARITABLE BEQUESTS
      • Summer legislative updates–and looking ahead to sunsets
      • FARMS, TAX PLANNING, AND FUNDING A FAMILY LEGACY
    • Sept 2022 - Professional Advisor Newsletter >
      • HIGHLY-APPRECIATED STOCK: IF YOUR CLIENT MISSED THE IDEAL WINDOW, IT’S STILL NOT TOO LATE TO SUPPORT CHARITY
      • THE “I’S” HAVE IT: TWO KEY TOPICS FOR CLIENT MEETINGS
      • INHERITED IRAS: BIG HEADACHE, OR BIG OPPORTUNITY?
      • Cryptocurrency: What if your clients own it and you don’t think they should?
    • October 2022 - Professional Advisor Newsletter >
      • CHARITABLE GIVING IN CHALLENGING ECONOMY
      • DISASTER PHILANTHROPY: YOUR CLIENTS AND THE IMPORTANT ROLE OF INDIVIDUAL PHILANTHROPY
      • COUNSELING YOUR CLIENTS ABOUT NONPROFITS: THE GOOD, THE BAD, AND THE BIG LEAPS
    • November 2022 - Professional Advisor Newsletter >
      • STRONG YEAR-END GIVING IN A BEAR MARKET: DONOR-ADVISED FUNDS COME IN HANDY
      • ADOPT A “DONOR BEWARE” ATTITUDE WHEN CLIENTS MAKE NON-MARKETABLE GIFTS
      • IT’S A BIG DEAL: ANSWERING CLIENTS' QUESTIONS ABOUT GIVINGTUESDAY
    • Dec 2022 Professional Advisor Newsletter >
      • HOW NFTS ARE CONNECTING MAKERS, INVESTORS & DONORS WITH CAUSES THEY LOVE
      • FIVE OF 2022’S MOST-ASKED QUESTIONS ABOUT QUALIFIED CHARITABLE DISTRIBUTIONS
      • 2022: IMPORTANT CHARITABLE TAX PLANNING REMINDERS
    • Jan 2023 Professional Advisor Newsletter
    • September Donor Newsletter >
      • KEEPING TRACK OF YOUR CHARITABLE DONATIONS IS MORE IMPORTANT THAN EVER
      • HERE’S WHAT TO KNOW BEFORE GIVING MONEY TO A NEW NONPROFIT
      • HOW TO GROW YOUR CHARITABLE GIVING BY BUNDLING TAX SAVINGS
    • October Donor Newsletter >
      • BRIGHT SPOTS IN THE MIDST OF ECONOMIC CHALLENGES
      • ACTIVATE IMMEDIATE AND EFFECTIVE ASSISTANCE FOR PEOPLE IN NEED
    • November Donor Newsletter >
      • Give a little and feel a lot better
      • “Checkout charity”: Cause for concern?
      • The perfect plate: Turkey, pumpkin pie and charitable giving
    • December Donor Newsletter >
      • LEVEL UP FAMILY PHILANTHROPY AT ANY AGE WITH THESE BOOKS
      • THE GIFT OF GIVING, COMMUNITY FOUNDATION STYLE
      • FOUR YEAR-END REMINDERS
    • Jan 2023 Donor Newsletter
  • DONATE
  • Fund Login

Highly-appreciated stock: If your client missed the ideal window, it’s still not too late to support charity


Picture
During a routine check-in meeting, your client casually mentions that the client’s employer, a local company, was just acquired. The client and dozens of fellow employee shareholders are now flush with cash. “I’d like to use some of the money to give to charity,” the client tells you. “Let’s talk about a family fund at the Peninsula Community Foundation.”

You try not to flinch as you mentally calculate the capital gains taxes your client could have avoided if the client had given some of those shares to a fund at the community foundation years ago when the company was clearly growing fast, making it a natural target for acquisition or IPO, but well before an exit was in the works.
​All is not lost. You can still help the client establish a donor-advised, field-of-interest, unrestricted, or other type of fund at the community foundation to fulfill the client’s charitable intentions. The client’s gifts to the fund qualify for a charitable tax deduction in the current tax year, helping to offset the income from the sale of the shares.  
 
Still, this situation is all too common and a good reason to regularly remind clients about their options for making gifts to charity and the tax benefits of each.
 
Giving cash to a public charity, which is what your client in this situation will be doing (!), is always a viable option. The general rule is that your client can deduct cash gifts to up to 60% of their adjusted gross income (AGI) in any given year. While this may not completely offset large gains from the sale of the stock, it will help to reduce the client’s taxable income.
 
Giving appreciated stock, which is what you wish your client had done, is a very tax-effective method of supporting public charities. Clients who donate stock outright avoid all capital gains tax that would be levied on a sale of the stock if it were sold prior to making the donation. Even with the 30 percent of AGI limitation imposed on gifts of highly-appreciated, long-term capital gains property to a public charity, your client likely will still come out ahead because the client’s AGI is presumably a lot lower than it will be in the year of a future stock sale. 

For more information about establishing a fund, please contact Michael Monteith, Email/757.327.0862 ​​​​
Picture

FOLLOW US

    Subscribe to our newsletter today!

Submit
  • Homepage - Peninsula Community Foundation
  • About
    • Board of Directors
    • Connect
    • Financials
    • News
    • Partners
  • Impact
    • Brink Impact Fund
    • Children's Holiday Fund
    • COVID 19
    • Give Local 757
    • Grants
    • Impact 100
    • Leadership Society
    • Legacy Society
    • PCF Initiatives >
      • Early Childhood
      • Homelessness
      • Neighborhoods
  • Scholarships
  • Funds
    • Agency
    • Corporate
    • Designated
    • Donor Advised
    • Employee Assistance
    • Legacy >
      • Types of Funds
    • Aug 2022 - Professional Advisor Newsletter >
      • BACK TO BASICS: REMINDING CLIENTS ABOUT WILLS, TRUSTS, AND CHARITABLE BEQUESTS
      • Summer legislative updates–and looking ahead to sunsets
      • FARMS, TAX PLANNING, AND FUNDING A FAMILY LEGACY
    • Sept 2022 - Professional Advisor Newsletter >
      • HIGHLY-APPRECIATED STOCK: IF YOUR CLIENT MISSED THE IDEAL WINDOW, IT’S STILL NOT TOO LATE TO SUPPORT CHARITY
      • THE “I’S” HAVE IT: TWO KEY TOPICS FOR CLIENT MEETINGS
      • INHERITED IRAS: BIG HEADACHE, OR BIG OPPORTUNITY?
      • Cryptocurrency: What if your clients own it and you don’t think they should?
    • October 2022 - Professional Advisor Newsletter >
      • CHARITABLE GIVING IN CHALLENGING ECONOMY
      • DISASTER PHILANTHROPY: YOUR CLIENTS AND THE IMPORTANT ROLE OF INDIVIDUAL PHILANTHROPY
      • COUNSELING YOUR CLIENTS ABOUT NONPROFITS: THE GOOD, THE BAD, AND THE BIG LEAPS
    • November 2022 - Professional Advisor Newsletter >
      • STRONG YEAR-END GIVING IN A BEAR MARKET: DONOR-ADVISED FUNDS COME IN HANDY
      • ADOPT A “DONOR BEWARE” ATTITUDE WHEN CLIENTS MAKE NON-MARKETABLE GIFTS
      • IT’S A BIG DEAL: ANSWERING CLIENTS' QUESTIONS ABOUT GIVINGTUESDAY
    • Dec 2022 Professional Advisor Newsletter >
      • HOW NFTS ARE CONNECTING MAKERS, INVESTORS & DONORS WITH CAUSES THEY LOVE
      • FIVE OF 2022’S MOST-ASKED QUESTIONS ABOUT QUALIFIED CHARITABLE DISTRIBUTIONS
      • 2022: IMPORTANT CHARITABLE TAX PLANNING REMINDERS
    • Jan 2023 Professional Advisor Newsletter
    • September Donor Newsletter >
      • KEEPING TRACK OF YOUR CHARITABLE DONATIONS IS MORE IMPORTANT THAN EVER
      • HERE’S WHAT TO KNOW BEFORE GIVING MONEY TO A NEW NONPROFIT
      • HOW TO GROW YOUR CHARITABLE GIVING BY BUNDLING TAX SAVINGS
    • October Donor Newsletter >
      • BRIGHT SPOTS IN THE MIDST OF ECONOMIC CHALLENGES
      • ACTIVATE IMMEDIATE AND EFFECTIVE ASSISTANCE FOR PEOPLE IN NEED
    • November Donor Newsletter >
      • Give a little and feel a lot better
      • “Checkout charity”: Cause for concern?
      • The perfect plate: Turkey, pumpkin pie and charitable giving
    • December Donor Newsletter >
      • LEVEL UP FAMILY PHILANTHROPY AT ANY AGE WITH THESE BOOKS
      • THE GIFT OF GIVING, COMMUNITY FOUNDATION STYLE
      • FOUR YEAR-END REMINDERS
    • Jan 2023 Donor Newsletter
  • DONATE
  • Fund Login