National Forest Foundation

Tax Advantaged Strategies

HAVE YOUR STOCKS RISEN IN VALUE?

GET DOUBLE TAX BENEFITS BY GIVING THEM

When you give stocks (or other securities) that have risen in value, you are eligible to deduct the full “appreciated” amount AND avoid paying capital gains taxes. With this year’s strong returns in the market, you may discover you can make a significant gift to the National Forest Foundation at a very low “cost.” There is truly a double tax benefit with this approach. It is important that you give the securities themselves versus selling them first. Check with your financial advisor for specific guidance on what you can deduct.

It’s easy to transfer securities directly to the National Forest Foundation. Simply call Ray A. Foote at the NFF at 571.366.1705 or email rfoote@nationalforests.org. Or you can reach Katie Neher at 406.830.3355 or kneher@nationalforests.org.

tax advantages of giving from your ira

If you are 70½ or older, you can make a direct transfer from your IRA to the National Forest Foundation without having to count this as income for federal income tax purposes. Thus, the transfer not only satisfies the minimum distribution requirement but can also provide a significant tax benefit. Of course, this may enable you to make a greater charitable gift now at a lower “cost” to support our National Forests. Again, we encourage you to check with your financial advisor.

APPRECIATED SECURITIES

Donating appreciated securities – such as stocks, bonds or mutual funds – directly to the NFF may provide attractive tax advantages. It is easy: rather than selling the asset and donating cash, you donate the asset itself to the NFF. When you do, you pay no capital gains taxes, and if you itemize your deductions, you can claim the full appreciated value of asset as a deduction, thus lowering your tax burden.

For example: If you own 50 shares of XYZ Company whose stock has increased from $40 to $50 per share over time, and you donate the shares directly to the NFF, here is the math:

  • Your cost to buy the original shares: $2,000 (50 shares X $40 each)
  • The value of your charitable donation: $2,500 (50 shares X $50 each)
  • Capital gains tax avoided $75 (assuming 15% long-term rate)

Actual “cost” of your $2,500 donation: $1,925 (cost to buy minus tax savings)

Please consult your legal or tax professionals for specific information regarding your individual situation. The transaction is simple: please see this document for information you will need, and please contact Ray A. Foote at the NFF at 571-366-1705 to notify us that you are making this type of gift so we can properly acknowledge it.

DONOR ADVISED FUNDS (DAF)

A Donor Advised Fund (DAF) is an increasingly popular charitable giving vehicle administered by a third party that may allow you to take an immediate tax deduction and then spread out your charitable gifts as you wish. DAFs offer favorable tax benefits and an easy, flexible, low-cost way of giving to charities of your choice. If you already have your DAF set up or plan to establish one, supporting the National Forest Foundation could be easy, quick, and tax-efficient. Most major DAF administrators (such as Fidelity, Schwab, or Vanguard) allow simple, online electronic donations from your account to the organization of your choice.

OTHER IMMEDIATE NON-CASH GIFTS

Business interests, real estate, land, valuable artwork, and personal property may also provide you with ways of giving that could offer income tax deductions and capital gains tax savings. Please consult your tax or legal advisor for details about your particular situation before making this gift. For more information, please call Ray A. Foote at the NFF at 571-366-1705.

Thank you for your support.