Planned and Life Income Gifts . . . Leaving a Legacy
Blue Ridge Community College is . . . innovative. Collaborative. Impactful. And as someone who knows the value of Blue Ridge Community College to our community, you also know that every gift is stretched to best support our students, programs and community.
Are you interested in a way of giving to Blue Ridge Community College that means your charitable dollars can go farther and have more impact? If getting more out of your giving sounds smart, then giving stock, bond or mutual fund shares might be the right idea for you.
Let’s say you bought securities for $2,000 five years ago. Those shares are worth $10,000 today. If you sold this stock, you would pay capital gains tax on the $8,000 gain in value. Now, let’s say that instead of selling that same stock, you donate it to Blue Ridge Community College Foundation. Not only does the full $10,000 support Blue Ridge Community College’s students and programs, but you pay no capital gains tax and get a charitable gift deduction on your taxes.
When you use stock to give, you can give more. Think of the capital gains tax that would have been due if you’d sold the shares as an addition to your gift. Given that the Dow Jones Industrial Average has risen substantially over the past several years, you are likely to realize a taxable profit on the sale of shares you’ve purchased or held over time. In North Carolina, you’ll save both Federal and state tax, so donating appreciated shares you’ve held for more than a year increases your gift by about 20% percent (15% Federal rate + 5.25% NC rate) over making the same gift by selling the stock and donating the proceeds.
Reduce future taxes with a swap. Many people invest in companies they believe in and want to hold that stock for the long term. When the stock increases in value, that’s confirmation of your good choices, and sets the stage for substantial gains when you sell. So why not consider a charitable swap? Donate some of your appreciated shares, then buy new shares of the same stock. You’ve kept your holdings steady, but reset your cost basis at the current, higher price. This will reduce future capital gains tax exposure if the stock continues to grow in value.
Giving with stock can be part of your portfolio strategy. If you’re a “buy-and-hold” investor, over time, stock splits and dividend reinvestment can tip your holdings out of balance. A review of your investments’ gains and losses will show if it’s time to rebalance your portfolio. If it is, choosing some shares to donate puts your capital gains to work funding your generosity. Your financial advisor can help you identify the best shares to donate for tax savings and your portfolio’s future performance.
The key to this giving strategy is to transfer your stock, bond or mutual fund shares directly to Blue Ridge Community College’s Foundation. As always, we encourage you to consult with a trusted financial advisor regarding your particular situation. If you decide that this way of giving is right for you, you or your broker can get specific instructions by reaching us at email@example.com or (828) 694-1710. And if you need more information, we are ready to help – just ask!
Types of Planned Gifts
Blue Ridge Community College Educational Foundation works with professional advisors including estate planning attorneys, accountants, financial advisors, insurance professionals, trust officers, and other professional friends who serve our area donors, their families, and corporations.
Your clients may already be donating regularly to Blue Ridge Community College Educational Foundation or are interested in learning more about how they can make an investment in the future of their College and the lives of others in our community. We can work with you to inform your clients of the needs and priorities of the College and match them with giving opportunities according to their specific interests and needs.
It is a pleasure to partner with our professional advisors. If you would like us to meet with you and your clients, please e-mail or call us to schedule a time that works best for you.