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How to Avoid Capital Gains Tax & Invest in Your Community

Last Updated: July 21, 2022

As real estate and stock markets grow, many San Diegans are turning to a unique form of giving that increases their charitable giving capacity while maximizing the impact on the local nonprofit sector strengthening our region.

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

The process is simple.

Instead of paying up to 20 percent in capital gains tax on the sale of stock or other non-cash assets, you could open a donor advised fund administered by a charitable sponsor, such as a community foundation like San Diego Foundation (SDF) or a commercial bank, which allows for more giving potential and immediate tax savings.

Those savings can then be directed to important programs and initiatives that align with your passions and advance quality of life in the region.

Gifting appreciated assets and opening a donor-advised fund at SDF also rebalances and improves portfolio maintenance through these additional benefits:

By avoiding capital gains tax, you’re leveraging your contribution for a bigger financial impact in your community while also securing a better tax break. In other words, your charitable investments and assets go much further to grow a vibrant San Diego region.

Asset Types

You can open a donor-advised fund 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 SDF helps manage are:

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 charitable 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.

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

Download the Essential Guide to Donor-Advised Funds

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