Ways to Give
When making a charitable gift, there are several alternatives to giving cash. Consider these other gift options as well in your planning.
Public Traded Stock
While one’s checkbook may be the usual means for making gifts, for many people a gift of securities makes good sense. Stocks you have owned for more than a year may be more valuable today and are subject to capital gains tax on the increased value if the stock is sold. When the stock is given to charity, however, there is no tax on the gain and your client receives an income tax deduction for the full fair market value of the stock.
Your client may donate stock controlled under Securities and Exchange Commission Rule 144 or other applicable restrictions subject to review and approval by the Foundation and/or the Hampton Roads Community Foundation.
Your client may give mutual funds to ESVCF. To learn more about this gift giving option, please contact the executive director.
For most people, one of their greatest assets is real estate, which often has appreciated. When your client gives real estate that is more valuable today than when acquired, the tax deduction is the present market value and there is no tax on the gain. If your client is thinking about giving real estate, please allow adequate time to complete the transfer, subject to review and acceptance by the Foundation.
Interests in Business Entities
Subject to review and acceptance by the Foundation and/or the Hampton Roads Community Foundation, which administers ESVCF funds, your client may make gifts such as closely held securities or interests in partnerships or limited liability companies. These can be accepted only if the Foundation is adequately protected from liability. The executive director will meet with you and your advisor to review each gift and determine how to handle the contribution. It is important to allow time for this review to occur.