Gifting Appreciated Stock: 2021 Year-End Charitable Giving Opportunity

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As long as the market remains strong and because the CARES Act is still in effect, 2021 is the year to consider making a significant charitable gift. However, first and foremost, always talk to your tax advisor before making any substantial charitable gift. Click here for an expanded list of 2021 year-end charitable giving opportunities. [Link to Constant Contact Email]

Gifting appreciated stock that you have held for more than a year allows you to deduct the full fair market value on the date of the gift while avoiding paying capital gains tax. The gift may be contributed to a donor advised fund which can be used over time to support nonprofit organizations and charitable cause you care about.


Bunching Your Gift

Further, making a large gift of appreciated stock in 2021 would allow you to take advantage of “bunching” your gift. For example, you contribute stock (valued at more than $12,000 if you file as an individual or $24,000 if you file jointly) to your donor advised fund in 2021, itemize your deductions, and receive a tax deduction for the full gift on your 2021 tax return. The following tax year in 2022, you take the standard deduction and use the donor advised fund to make your 2022 annual gifts. Below is an example of "bunching," illustrated by Northern Trust.

bunching-example.jpg

An example of bunching your charitable contributions. Image: Northern Trust


Continue the conversation with Betsy Pennewill, Corporate Counsel, by calling 941-556-7152.

About Author

Betsy Pennewill, JD

Corporate Counsel