When most people give to charity, they give cash. But did you know that you can donate appreciated stock, bonds, or mutual funds to Feeding America West Michigan? It’s easier than you might think, and donating this way could actually save you money.
Why Should You Consider Donating Securities?
To put it simply, donating stock, bonds, or mutual funds is often better for you. Current tax law permits donors to claim a deduction on the full fair market value of the property they are giving away. This means that you get to claim its full, appreciated value on your taxes. By contrast, if you were to sell your shares first and donate the resulting cash, the sale may be subject to tax, leaving you with less to donate and a smaller tax deduction to claim. Here’s a helpful illustration of this principle.
The Grand Rapids Community Foundation has created a gift calculator to help you determine the relative benefits of donating stock versus cash.
How Do You Make a Gift of Stock?
The best way to get started, as with any gift that involves your investments, is to discuss your intentions with your broker or financial advisor. Find out what size and type of gift makes the most sense for you personally.
Once you have determined what you want to give, fill out this form and submit it to your broker. Your broker will then initiate the transfer.
If you have any questions about donating securities to the Food Bank, please contact Pattijean McCahill at 616-389-6356 or firstname.lastname@example.org.