Saving money on your taxes while helping children and families is definitely a WIN-WIN

CAROLINE EDENFIELD CEO of The Foundation of The Methodist Home

Did you know that you can save money on your taxes while helping the children and families that are served by The Methodist Home? Donations of appreciated securities, such as stocks, bonds, and mutual funds can not only help those in the care of The Methodist Home, but can also be a smart tax-planning move.

With charitable gifts of long term held appreciated securities, the donation you make and the deduction you receive may be greater than if you sold the securities and then donated the cash proceeds. When donating securities to a charity, you are generally able to take a tax deduction for the full fair market value of those securities up to the amount allowed by the IRS. In addition, donating securities directly to the charity allows you to avoid paying capital gains taxes. If you were to sell shares of your securities and then donate the proceeds, you would have to pay capital gains on the difference between the price you paid for the shares and the price at which you sold them. However, when donating securities directly to a charity, the IRS allows you to bypass paying capital gains taxes.

Not only is donating securities a good idea for the present, it may reduce your future capital gains. Many investors have stocks that they want to hold for the long term within their portfolios. If these appreciated shares are donated and new shares are purchased in their place, the cost basis will reset. With this new cost basis, future capital gains exposure can be reduced if the stock continues to grow in value. Donating securities is relatively easy and can usually be initiated with a call to your financial advisor.

Today, the work of The Methodist Home and The Foundation of The Methodist Home is more important than ever. Your donations of stock and other appreciated securities provide critical financial support enabling us to make a difference in the lives of the children and families entrusted into our care.

Thank you for all that you do to help us help others.

If you would like to learn more about how your donation of stock or appreciated securities can help make a difference in the lives of children and families, please contact Caroline Edenfield at caroline@foundationmch.org or 478-751-1725.