Donating stock to a charity can be a win-win situation for both you and the charity you support. Here are four ways you would benefit from this:
1. **Minimize Capital Gains Tax**: When you sell a security, you trigger a capital gains tax based on the profit you make from the sale. This tax rate can add a substantial amount to your tax bill. However, by donating your stock directly to a non-profit, you can save money on taxes.
2. **Maximize Tax Deductions**: The stock market has seen significant returns, leaving investors with difficult choices about how to handle the tax implications. By donating stock, you can maximize your tax deductions and handle these implications more effectively.
3. **Increase Your Charitable Impact**: Donating stock can help you give 20% more to your favorite charities. This means you can make a bigger impact on the charities you support.
4. **Simplify Your Giving Strategy**: Donating stock is a nice way to have one transaction with stock and then send cash to charities, simplifying your giving strategy.
Daffy is a great option for a Donor-Advised Fund (DAF). With Daffy, you can easily donate your stock to charity, save on taxes, maximize your tax deductions, increase your charitable impact, and simplify your giving strategy. So why not consider Daffy for your next charitable donation?
Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.