People donate to make a difference, but they don’t always know how to make the most of that goodwill.
There are ways to donate more – and get more tax breaks in return – if you understand the rules. And one of the most efficient ways to donate is by making an in-kind donation of stock.
That means that instead of selling shares or mutual funds you don’t want and then donating the money, you donate the actual asset. The charity cashes it in and gives you a donation tax receipt. But you also avoid paying the capital gain tax on those shares, if they went up in value. It’s a way to save a little – and maybe even give a little more.
Click here for more on making an in-kind donation of stocks and reaping tax benefits.