Stock or Insurance

Other Ways to Leverage a Gift Today, giving Appreciated Assets

If you have owned an asset like stocks or bonds (or in some cases, real estate) for more than one year and the asset has increased in value, a charitable] gift can minimize taxes and leverage the full value of the asset.

By transferring the asset directly to a qualified charity, you may deduct the full fair market value of the asset at the time of the gift.

Consider the example: Mrs. Sample purchased a block of stock for $1,000 several years ago. Today the stock is worth $2,500. If Mrs. Sample transfers the stock directly to charity, she will bypass the capital gains tax and receive a $2,500 tax deduction when she files her Form 1040 this year.

A Gift of insurance

Many donors find that a gift of a life insurance policy is a unique way to realize charitable goals. In order to qualify as a contribution, a charity must become the owner and beneficiary of the policy. You can check with your insurance agent about this as another way to benefit from charitable contributions.