Use Your Securities to Make a Greater Impact

Matt and Veronica, a married couple with several successful investments, were thinking of donating a portion of their stock to help fund a wildlife rescue group.

At first, they considered selling the stock and donating the proceeds to the group, because that seemed like the easiest option. Although they had established a private foundation in the past and also considered that option, their advisor pointed out some of the advantages of using a donor-advised fund (DAF) to make the donation instead: the higher tax deduction limitation on the value of their securities, for starters.

Their advisor noted that the tax deduction for giving their stock to the foundation would be limited to 20 percent of their adjusted gross income, while for a public charity with a DAF program the deduction limit was 30 percent – a significant difference.

Additionally, since Matt and Veronica were very private when it came to their philanthropy, they appreciated the ability to give anonymously with a DAF since it afforded them an extra level of privacy.

Reach Rewarding Results

Best of all, Matt and Veronica were able to lower their tax exposure and recommend a larger grant from their DAF than they would have been able to if they had sold the shares as they originally planned.

By contributing the shares to Fidelity Charitable®, they reduced their tax obligation by $49,837 and were able to donate $35,700.

Maximize Your
Charitable Giving

Matt and Veronica reduced
their tax obligation by:
49,837
Additional amount dedicated to charity: 35,700

Potential benefits of contributing long-term appreciated securities directly to Fidelity Charitable®

  • Provide more money to charities
  • Minimize capital gains tax exposure
  • Take a tax deduction

Simplify Your
Charitable Giving

Using their DAF as a complement to the private foundation also presented Matt and Veronica with the opportunity to support an organization that had not traditionally been their foundation’s area of focus. They simply contributed the securities to Fidelity Charitable and then submitted an online grant recommendation to support their chosen organization, freeing up their foundation manager to focus on their other philanthropic goals.

Interested in Doing Something Like This?

If a donation scenario like Matt and Veronica’s sounds like it could fit your personal situation, know that Fidelity Charitable has the experience and technical expertise to help. Fidelity Charitable can:

  • Simplify the process of contributing long-term appreciated securities

  • Help realize the most favorable tax consequences with the greatest charitable impact

  • Guide the entire asset transfer process

  • Work with you or your advisors to determine which securities might be best to contribute

To learn more, please contact your financial advisor or
Fidelity Charitable at 800-952-4438 or via our Contact Us form

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