Have you thought about giving stock to charity?

Do you give with cash to the charities you love? If you’re rebalancing your portfolio at year end, giving stock instead of cash may be a more efficient way to make an impact. And giving stock before you sell it could leave you with more to support your favorite charities this season or in the year to come.

It’s simple, with a Giving Fund (donor-advised fund) at the National Christian Foundation (NCF).

What are the rules for stock giving?

Give your winners and sell your losers.

First, any stocks you give must have appreciated in value since you purchased them. When you sell appreciated stocks, you’ll be taxed on the capital gains. But by gifting the stock to your Giving Fund, you can potentially save on those taxes, leaving you with more for charity. Second, to qualify for a fair-market-value deduction, the stock must be owned for more than a year. If you have held a stock for a year or less, you will not qualify for this deduction.

Remember that stocks which have decreased in value aren’t usually ideal candidates for giving. You’re better off selling those, so you can realize the capital loss. You can still give from the proceeds after you sell them.

If your total deductions are less than the standard deduction ($13,850 for single and $27,700 for joint filers), donating stock won’t help with your taxes, but you might consider a bunching strategyopens in a new tab (giving several years’ charitable gifts in one year) for more tax efficiency and greater giving.

Why use a Giving Fund?

You can give stocks directly to any charity, but giving stocks with a Giving Fund instead of directly to charity lets you enjoy any potential tax benefits of donating to charity and allows you time to decide when and where to give. And, at NCF, the money in your Giving Fund is invested for growth while you’re deciding when and where to give. Granting to charity and record-keeping are made easier with a Giving Fund. Many who give through NCF say that, by not having to write checks and keep all the paperwork, they experience more joy in their generosity.

NCF

We know you want to be a good steward of all God has entrusted to you. That’s why we come alongside you with shared biblical values, innovative charitable solutions, and highly personalized service so you can give more strategically and with greater purpose. Since 1982, generous givers at NCF have mobilized more than $25 billion for 100,000+ charities.

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