By David Gold
With the gyrations in the stock market over the last couple of months, now is a good time to donate long-term appreciated securities, including stocks, bonds and mutual funds, directly to fund your 2020 Jewish Community Fund gift, and to consider adding to or starting a Donor Advised Fund (DAF).
This is an opportune time to review your investment portfolio and consider timing the recognition of capital gains for assets held long-term — more than one year.
The top income tax rate on long-term capital gains remains at 20% (but can be as high as 23.8% when you also consider the tax on net investment income).
By making a gift of appreciated securities to charities, you can avoid paying any capital gains tax on the value of securities transferred to the Jewish Federation, and you may be able to receive a charitable contribution deduction (limited to 30% of adjusted gross income) for the full fair market value of the securities at the time of the gift.
Donating appreciated stock to establish a DAF or add to an existing DAF at the Jewish Federation of Greater Philadelphia is another excellent way to maximize tax savings from such gifts and retain the privilege of making grant recommendations in the future.
If you have depreciated stocks, you could sell them, recognize the tax loss and then give the proceeds to Jewish Federation.
Endowment professionals at the Jewish Federation of Greater Philadelphia are available to work with you and your professional advisers to maximize the benefits of these and other tax-planning strategies for you and the Jewish community. As always, please consult your tax and financial advisers before making any donations of appreciated stock, bonds and mutual funds.
For more information, contact Jennifer Brier in Jewish Federation’s Planned Giving and Endowments Department at [email protected] or 215-832-0528.
Dave Gold is a CPA with the West Chester firm of Pellini Gold Cordes, LLC specializing in tax planning and preparation. This article is for informational purposes only and should not be construed as legal, tax or financial advice. When considering gift planning strategies, you should always consult with your own legal, investment and tax advisers.