Why More Investors are Donating Stock to Charity


by Chana R. Schoenberger

As the stock market reaches new heights after the presidential election, more investors are looking at their portfolios to see which securities have gone up the most-and then donating them to charity.

“We’ve seen an uptick in charitable giving using appreciated stock,” says Paul Stark, a wealth and estate-planning strategist at SunTrust Banks Inc.

That uptick is being fueled by assumptions about what a Trump administration will do.

“With Trump being elected, there’s more certainty that tax rates will be lower” in the years ahead, Mr. Stark says. That means investors who donate appreciated stock before the end of December will be able to deduct their gift’s value from a 2016 tax bill that could be higher than their 2017 tax bill.

Although not always an indicator of impact and sustainability, nonprofit growth is a constant focus of philanthropic leadership. A recent study of over 200 organizations found three common attributes among nonprofits that were able to efficiently make the leap from idea to $2 million budget: strong teamwork, effective outcome evaluation system, and access to capital.

What’s more, the Trump campaign discussed changing the limits on itemized deductions, which could make charitable giving less valuable as a tax advantage in future years, saysAdrienne Penta, a senior vice president at Brown Brothers Harriman in Boston. Currently, taxpayers typically can roll forward unused charitable deductions for five years. It’s unclear if that will change, she says.

For those looking for a tax break from a donation, “it’s almost always better…READ MORE