Did your stock earnings skyrocket over the last 18 months due to investments in companies like Zoom and GOJO Industries, the manufacturer of Purell? Surging stock performance should prompt you to review your non-retirement accounts, which include mutual funds and exchange-traded funds (ETFs) in addition to stocks, said Meg Prestigiacomo, Senior Vice President and Financial Advisor at Baird – the Prestigiacomo Carroll Group.
“We’ve had significant gains in particular areas of the market, such as large technology companies,” said Prestigiacomo, an active Madison Public Library Foundation volunteer and donor.
Donating appreciated stock to the foundation is “a win-win strategy,” she said, for two reasons: It can help the stock owner avoid hefty taxes, and it also greatly benefits any qualified nonprofit because these organizations don’t have to pay taxes on stock gifts.
“A gift of stock can be beneficial for both the donor and the charity,” Prestigiacomo said. “You avoid capital gains tax on the amount of appreciation, and your gift ends up being greater in value than if you sold the stock and donated cash from the sale.”
Depending on your personal situation, you may be eligible for additional tax savings, which could include a total deduction for the full market value of the security.
If your stock portfolio doesn’t include any pandemic blockbusters, that’s OK — even slower, more gradual gains can result in valuable dividends for your Library Foundation.
To learn more about making a stock gift, contact foundation Donor Relations Manager Dayna Long at 608.266.6318 or email@example.com.
Meg Prestigiacomo and Robert W. Baird & Co. Incorporated do not offer tax services. Please consult your tax advisor.