Outside the Dollar: Non-Cash Gifts

According to IRS data, non-cash giving accounts for about half of total charitable donations. While publicly traded stock is the easiest and most common non-cash gift, you might also consider real estate, artwork or collectibles, cars or other vehicles, or an ownership stake in a private business.

Tax and other benefits

A donation of non-cash assets is a powerful option if you want to maximize your impact. It comes with double tax benefits:

• The gift qualifies for an immediate income tax deduction for the full fair market value.
• No capital gains tax is due on the appreciation.

Beyond the tax benefits, you may appreciate that you can donate assets directly to us without the hassle of selling your property.

Qualified appraisals

While publicly traded stock is easy to value, the same is not true for all non-cash gifts. Other non-cash items over $5,000 require a qualified appraisal to determine the fair market value for income tax deduction purposes. Because these appraisals generally take some time, it’s best to start thinking about a non-cash gift early in the year.

Moving forward

With tax time right around the corner, you may already be thinking about ways to reduce next year’s tax bill. If giving outside the dollar is the right fit for your situation, don’t wait until December to initiate your gift. Read more about various non-cash gifts here on our website or contact us with specific questions.