Feb 14, 2012

Stock Market High Provides Great Opportunity for Philanthropic Giving

The Dow Jones Industrial average has surpassed 13,000 for the first time since May of 2008. Other averages have also seen remarkable highs in 2012, including the Standard and Poors, the Russell 2000, and the Nasdaq. These numbers have created a new optimism on Wall Street, where it has become clear that the stock market has finally recovered from the aftermath of the recession and consumer confidence is on the rise.

With this exciting economic news, now is a great time to consider using appreciated securities to fund your philanthropy. The tax advantages are two-fold. First, by donating your stock directly to the Greater Miami Jewish Federation or other qualified charities, you avoid paying capital gains tax; second, you earn a charitable deduction for the full fair market value of the stock on the day you donate it. With the recent success of the stock market, this means that both you and Federation will get the most out of your gift.

In addition to these benefits, a securities gift also offers you tremendous flexibility with regards to how the gift is allocated and how the gift can support you. Below are three different ways that a securities gift can make your philanthropic vision come to life.

By giving to Federation through securities, you are not only donating in a tax-savvy way that maximizes the effect of your gift. You are also allowing yourself to take advantage of some of The Foundation’s most exciting charitable giving opportunities, including Donor-Advised Philanthropic Funds, a Life Income Gift, or a Permanent Endowment.

• A Donor-Advised Philanthropic Fund: These easy-to-establish funds save you time and money. Through a Philanthropic Fund, you make grant recommendations about how the money in your fund is allocated, allowing you to give directly to the causes that are most meaningful to you. The Foundation also invests your gift so that it can grow further.
• A Life Income Gift, Gift Annuity or Charitable Trust: A Charitable Life Income Plan allows you to create a lasting Jewish legacy and receive tax advantaged income at attractive rates for you or someone you designate.
• A Designated Endowment: With an endowment, you can provide an ongoing source of financial support to the charitable institution of your choice. This is a wonderful opportunity to give a gift to the community that will endure for many years into the future.

To learn more about giving securities and The Foundation of the Greater Miami Jewish Federation, please click here or call 786.866.8623