If you give to various charities and are looking for a simple way to manage the process of giving appreciated stock, consider a Donor Advised Fund (“DAF”).
Simply give your appreciated securities to the DAF (technically a charity) and receive the deduction at that time. You can do this with as little as $5,000. The DAF will then sell the appreciated stock and wait to take direction from you. You do not need to grant the money out right away. You can wait and invest into securities that have the potential to grow tax free until you are ready to grant to your favorite charities. If you want to remain anonymous in your donation, a DAF allows for that as well.
A DAF has many similar attributes to having your own private foundation. To learn more, simply contact us and we can provide you with more details. As always, please consult with a tax adviser before making any decisions.