A Gift of Assets

While most people make their gifts to a favorite charity with a cash donation, there may be a better way for you to give. When you donate cash to fund your philanthropy objectives, it cannot be used for other purposes. But when you use assets to fund your philanthropy, you can do more with the cash you keep.

When you fund your philanthropy through a gift of assets, you benefit in three ways.

• You retain the cash you otherwise might have given.
• You can receive a charitable tax deduction for the full, fair-market value of the asset.
• You avoid capital gains taxes on the appreciated value of the asset.

Charitable giving is a singular opportunity to use your non-cash assets in lieu of cash to fund your philanthropy goals. And the value of an asset you wish to donate may exceed any cash gift you are able to make – thus allowing you to make a larger gift, if you choose.

In turn, UPF receives the full value of the asset when it is subsequently sold and converted to cash. None of the value is lost to taxes, as it would be if you liquidated the asset.

Here are the most common types of assets that can be donated:

• Investments
  • Publicly-traded stocks
  • Bonds
  • Mutual funds
• Real Estate
  • Residential/Vacation
  • Rental
  • Commercial
  • Undeveloped
• IRA Funds – The IRA Charitable Rollover provision allows individuals who have reached age 70½ to donate some or all of their Required Minimum Distribution from an Individual Retirement Account directly to a charitable organization. It’s a simple transaction directly from your IRA Trustee to UPF – you don’t write the check. This “qualifying charitable distribution” doesn’t count as taxable income to you.

The information presented here is not intended as legal or tax advice. For legal or tax advice, please consult an attorney or financial planner.