If you have investments such as stocks, mutual fund shares, or other securities, they may have increased in value over time. If you sell those investments to donate to charity, you will need to pay tax on the increase in value, and this will decrease the amount you can donate and perhaps the amount you can deduct on taxes. If you donate those assets to charity directly, you will not have to pay tax and you may have a tax deduction.
You may donate investments to Portland Friends of the Dhamma using a Donor Advised Fund (DAF).
- Create a DAF in 15 minutes with a charitable arm of a brokerage or organization (Table 1).
- Make an irrevocable donation of your investments to the fund and receive tax benefits in that tax year on the full amount and avoid paying any capital gains tax (Table 2).
- Choose how your fund will be invested so it will grow over time.
- When you are ready to give money, recommend a grant from your fund to PFoD. Your grant recommendation will be reviewed, and, because PFoD is a 501(c)(3), your fundÕs donation will be approved and sent within days.
- You can then set up automatic monthly recurring grants. The money remaining in your fund remains invested. You may continue to donate investments to the fund over time to make more grants.