Benefits of Making Charitable Gifts
“Remember there’s no such thing as a small act of kindness. Every act creates a ripple with no logical end.” – Scott Adams
When making charitable gifts, you and the charity may benefit in a number of different ways:
- The charity receives a gift it can count on to further its cause.
- In most cases, the charity benefits from the full value of the asset transferred since transfer taxes may not apply.
- You may benefit from the savings associated with a charitable income tax deduction.
- You may be able to avoid a lump-sum capital gains tax on a highly appreciated asset.
- You may achieve significant gift tax savings and reduce estate taxes.
- You may be able to retain an income stream form the transferred asset for life or for a period of years.
- You can diversify a concentrated stock position without incurring immediate taxes.
- The asset given to charity can be replaced at a discount with life insurance.
Source: John Hancock Comprehensive Charitable Planning Client Guide