As of this writing, the S&P 500 Index (which covers a broad range of companies and industries) is up about 18% year-to-date.
Further, starting in 2009, there have only been two years when the index has dropped (2018 and 2022), and overall has increased by about 14% per year in that timeframe-- an impressive stretch indeed.
In short, if you have held shares in an exchange traded funded (ETF) or mutual fund that has mirrored returns of the S&P 500 for much of the last decade, your assets should have increased handsomely. A large percentage of individual stocks have grown in value as well.
Did you know that if you donate appreciated assets such as ETFs, mutual funds, or individual stocks, you can save big on taxes, AND make a positive impact on the community?
Here are some key benefits of donating appreciated assets:
Avoid paying capital gains tax on the sale of appreciated assets, when held for at least one year.
For example, if you purchased $10,000 in a stock that has increased by $5,000 and is now valued at $15,000, that $5,000 in capital gains would be taxed if you were to sell it. Any portion of your stock holding that you donate will avoid capital gains taxes.
Receive an immediate charitable income tax deduction on your tax return, based on the fair market value of the gift.
Streamline your annual giving by contributing to your donor advised fund with the JCF; your gift of appreciated stocks or other assets will secure immediate tax benefits, while enabling you to recommend grants to your favorite charitable causes from your fund at any future time.
Create a legacy with an endowment fund using donated assets. Your fund will perpetuate annual grants to the charitable cause of your choice, for many generations. It's easy to do and provides key tax benefits.
Important notes:
In order to earn the aforementioned tax benefits, you must donate the appreciated assets directly from your broker to the JCF or other 501(c)(3) nonprofit organization. If you sell the assets first and then donate the proceeds, you will not retain the tax benefits.
Please consult with your trusted advisor, as the JCF does not provide accounting, financial, or legal advice.)
To learn more about opening an endowment fund or donor advised fund with the JCF and donating your appreciated assets into the fund, please contact JCF Director David Snyder today at 856-673-2571 or dsnyder@jfedsnj.org.