In light of the increased basic standard deduction for income tax returns, many people whose annual charitable giving and other itemized standard deductions do not reach the itemization threshold are considering ways to continue to financially support their church or organization. One idea is for individuals to make a large gift of appreciated stock “in-kind” to the church or to a charitable giving account (Donor Advised Fund):
- Frontloading charitable giving allows individuals to realize the income tax benefits of their charitable gift in the first year while still allowing the donor to support their favorite charities over the following few years
- Donating appreciated “in-kind” stock (vs. selling appreciated stock, then donating cash) to the charitable giving account allows the donor to give even more to his or her favorite charities without any additional cost to the donor (the donor receives a charitable deduction for the fair market value of the stock and does not have to pay capital gains tax).