Here is a great idea related to year-end stock gifts.
First, please remember that the stock market is up substantially AND the tax rates are also up. These two situations are creating a situation where donors with a lot of appreciated stock and increased tax burden NEED to give away larger sums of money with December 31 looming.
If the donor has securities that 1) have gone up in value and 2) have been owned more than one year, there is an opportunity for your organization to receive some financial benefits while helping the donor with his or her tax “situation.”
Donors who give highly appreciated stocks and bonds can receive a double tax benefit that can increase the impact of their generosity. They can deduct the full fair market value of their securities – not just what they paid originally – and they can save again by avoiding all capital gains taxes on their “paper profits.”
Now, please do not take the information in this post as legal or tax advice. Instead, consult your organization’s tax authority. We are just passing along the marketing idea.
This why I am writing about this on December 16th.
There are a couple of weeks left in this year. And here is what another non-profit has wisely done and what you need to do as well:
- Set up an internal system to process donor gifts of appreciated stock with the appropriate experts in your organization. Mutual fund transfers will take longer, and it may be too late, but ask anyway.
- Prepare a one-page flyer that has been reviewed by your legal and financial counsel and that speaks to the benefit of donating appreciated stock and mutual fund shares before the end of this year. Provide an 800 number the donor can call as well as an email address they can write to. In other words, make it easy.
- Send this notice to your caseload donors. Do it NOW before time runs out. I mean now!
If you can get this accomplished in the next couple of days and get it out the door, you will be amazed at how the donors in this situation will respond.
The improving economy has created benefits you need to take advantage of before the end of the year.
I am keeping this short so you can stop reading and get moving on this. It IS important.