Shalom Austin Legacy Donor Marianne Rochelle. Courtesy: Marianne Rochelle 

Shalom Austin Board Chair Seth Halpern. Courtesy: Seth Halpern 

As the end of the calendar year approaches, this is a time many people focus on charitable giving. While most people reach for their credit card or other ways to transfer cash when paying their annual gifts to charity, others utilize different tax-smart giving strategies which point to donating appreciated assets as a win-win approach that can maximize the amount of a charitable gift while reducing the personal tax burden.    

  “Donating appreciated non-cash assets like stocks, business interests, real estate or even cryptocurrency, held more than one year translates to a larger contribution to charity than selling the same asset and donating the proceeds,” said Shalom Austin Jewish Foundation Director and Philanthropic Advisor Jennifer Kohn Koppel. “The simple calculation starts with the elimination of capital gains tax that you would incur through a sale of the asset. On top of this, those who itemize taxes may claim a fair market value charitable deduction and generate additional tax savings.”   

  Shalom Austin Legacy Donor Marianne Rochelle and Shalom Austin Board Chair Seth Halpern have been active local philanthropists for many years and have seen firsthand the impact of donating appreciated stock.  

“Donating appreciated stock is a smart way to give more while paying less in taxes. Turning our investment gains into a powerful force for good, helping our favorite charities achieve their mission with a larger, tax-efficient contribution is a win-win”, said Rochelle. 

For Halpern and his wife Lauren, they say it is important to them to make charitable donations because as the Jewish population in Austin continues to grow, so does the opportunity to ensure it thrives. “Charitable donations fund programs, staff, emergency relief and numerous other important initiatives. It’s what gets things done and the money can be put to use in so many high impact ways,” said Halpern.  

Koppel says donating appreciated stock is also beneficial for owners of privately held businesses seeking to give back to the community. Donating a business interest – instead of cash from the sale of the interest – drives a similar maximization of generosity and efficiency in tax planning.   

“Many non-profit organizations and houses of worship have the capacity to receive donations of appreciated assets but donating these assets to a Donor Advised Fund (DAF) provides the most flexibility to the donor. The DAF is also a stand-alone tax-smart tool for unexpected increases in income from bonus compensation, inheritance or another event,” said Koppel. 

“The shift in thinking about assets rather than only the cash you have available when making charitable decisions is powerful and smart for donors and the organizations they support,” said Koppel. She concluded with a reminder that people should always consult with their own tax, legal and accounting advisors before engaging in any transactions. 

 To learn more, contact [email protected].