Charitable Planning

For many people, a personal financial plan is not complete until it includes charitable giving - not just an occasional donation to charity but a plan to "share the wealth." Learn how to make philanthropy a part of your life.

In many cases, the most cost-effective way to make a gift is with appreciated assets that qualify for long-term capital gain treatment. This is so because:

• The donor deducts the full fair market or appraised value of the asset.
• The donor avoids the capital gains tax that would have otherwise been paid if the asset was sold and a gift made of the proceeds.

This strategy can be especially helpful if the donor has an opportunity to sell an asset, such as real estate or closely held stock in a business, that has appreciated in value since its acquisition. If you are contemplating the sale of a business or a piece of property, be sure to make your charitable gift of stock or real estate before you enter into an agreement of sale.