If you have stocks or other assets in your investment portfolio that have appreciated this year, you may want to consider a unique form of giving that increases your charitable giving capacity and maximizes your impact.

Gifting stock, real estate and other appreciated securities is a win-win opportunity that has become one of the most effective ways to give back to your community and help others.

The process is simple.

Instead of paying up to 20% in capital gains tax on the sale of stock or other non-cash assets, you donate those assets directly to a donor-advised fund (DAF) administered by your local community foundation or a commercial bank, which allows for more giving potential and immediate tax savings.

Those savings can then be directed to essential programs and initiatives that align with your passions and improve the lives of people who need help.

Gifting appreciated assets to a DAF rebalances and improves portfolio maintenance through these additional benefits:

  • Immediate income tax deduction at the point of transfer
  • Value is not subject to estate tax
  • Appreciation value is tax-free
  • Increases your charitable contribution

By donation appreciated assets to avoid capital gains tax, you’re leveraging your contribution for a more significant financial impact in your community while also securing a better tax break. In other words, your charitable investments and assets go much further.

Asset Types

You can open a DAF using most forms of appreciated assets, so long as you’ve held on to the assets for at least one year. The most common assets we help manage as a community foundation are:

  • Stocks (Publicly Traded, Private and Restricted)
  • Bonds
  • Fund Shares
  • LLP Shares
  • Individual Retirement Account (IRA)
  • Private Equity Stakes
  • Partnership Interests
  • Pre-IPO shares
  • Real Estate

If your real estate property has grown in value, but the expenses and maintenance no longer make it a worthwhile investment, donating real estate to a donor-advised fund offers a reduction in taxable estate value and the same benefits as stock contributions:

  1. No taxes on capital gains
  2. Charitable deduction against other income
  3. Reduction of taxable estate value

Start Your Journey

The SDF Giving Team simplifies the process of contributing stock and other appreciated securities to meet your personal philanthropic goals.

To donate an appreciated asset or chat about donor-advised funds and tax benefits, contact our Donor Services Team at (619) 814-1332 or DonorServices@sdfoundation.org.

Download the Essential Guide to Donor-Advised Funds today to read more about donor-advised funds.

Download the Essential Guide to Donor-Advised Funds

This helpful resource provides you the information you need to better understand the impact and benefits of donor-advised funds.