Donating Appreciated Securities to the AAML Foundation — A Winning Tax Strategy!

Are you interested in maximizing the charitable impact of your donation to the AAML Foundation while taking advantage of two powerful tax benefits?[1] Gifting appreciated securities held for more than one year directly to a 501(c)(3) charity, like the AAML Foundation, eliminates capital gain taxes on the donated securities while the Foundation receives the full market value of the securities. Plus, donors who itemize may be eligible to deduct the full market value of the donated securities on their tax returns, subject to certain caps based on the donor’s adjusted gross income. Investors seeking to rebalance their portfolios to reduce tax exposure for stock that has grown too large find that gifting those shares to a qualified charity is a tax-free strategy to rebalance their asset allocation.

The dual tax benefit of donating appreciated securities increases the impact of your charitable gift when compared with a cash donation or selling appreciated securities and donating the after-tax proceeds. It is a gifting strategy where everyone wins except the tax collector! If you want to learn more or to donate appreciated securities, send your inquiry to Kim Scott at kim@aamlfoundation.org.

[1] This article does not provide tax advice.  Always consult your tax advisor for the tax impact of donating appreciated stock based on your financial circumstances.