Stock donations can ease your tax burden

The stock market is near all-time highs. An effective way to maximize your contribution to LACF and save tax money is through stock donations.

Los Altos Community Foundation accepts stock donations for its Community Impact Fund as well as for any of its programs and funds.

But what if you have more appreciated stock to sell than you’d like to donate right now?

A simple solution is to set up an LACF Donor Advised Fund. Contribute stock (or other appreciated assets) to get an immediate tax deduction, and then grant from the fund to nonprofits anywhere in the U.S. for years.

With a Donor Advised Fund, you can de-couple your philanthropy from the whims of the stock market.

For example, if your annual donation budget for all nonprofits is roughly $5,000 per year, you could open a Donor Advised Fund, contribute $25,000 of appreciated stock, and then grant $5,000 annually to the nonprofits of your choice.

Benefits of Donating Stock – Example
(Note: The above is only an example.  Please consult your tax advisor for your situation.)
A Donor Advised Fund has many of the advantages of a private foundation without the legal and reporting requirements. LACF takes care of all of that.

Donor Advised Funds now outnumber family foundations by nearly three to one, in part due to their convenience and simplicity.
 
Other advantages of a Donor Advised Fund:

  • LACF offers an online portal so you can see a complete record of your grants from your Fund anytime.  (Have you ever tried to figure out how much you donated to a nonprofit last year?)
  • Many nonprofits cannot accept gifts of stock.  You can make one stock donation to your LACF DAF and then grant to other nonprofits from it.
  • A DAF is a great way to teach your children about giving. For example, during the holiday season, one LACF DAF owner offers his children the opportunity to each select a nonprofit they’d like to support from his fund.
  • And finally, investment firms such as Vanguard, Schwab, and Fidelity cannot offer advice on local grant opportunities. LACF knows the needs of the Los Altos/Mountain View communities, helping your grants have the maximum local impact.

 
If you would like to open a Donor Advised Fund at LACF or learn more about them, I’d love to talk with you. 

Give me a call or send me an email.  You can also download the DAF form.

Joe Eyre, LACF Executive Director

Leave a Reply