{"id":464,"date":"2021-04-05T15:44:00","date_gmt":"2021-04-05T15:44:00","guid":{"rendered":"https:\/\/fundingmatters.com\/blog\/fmi\/?p=464"},"modified":"2021-06-18T18:49:45","modified_gmt":"2021-06-18T18:49:45","slug":"from-spare-change-to-real-change-enlightened-philanthropy-and-how-to-achieve-it-for-all","status":"publish","type":"post","link":"https:\/\/fundingmatters.com\/blog\/?p=464","title":{"rendered":"From Spare Change To Real Change: Enlightened Philanthropy And How To Achieve It For All"},"content":{"rendered":"\n
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From Spare Change to Real Change:
Enlightened Philanthropy and How to Achieve It For All<\/h2>\n\n\n\n

In the previous blog, Why Visualization is the Key to Success<\/a>, we talked about the importance of visualization to help donors, their families, and their advisors construct major and or planned gifts. This blog will continue the conversation, specifically focusing on how this visualization method pertains to stocks.<\/p>\n\n\n\n

Here\u2019s what you should know.<\/p>\n\n\n\n

Option 1: Stocks and Mutual Funds<\/strong><\/p>\n\n\n\n

As briefly discussed in our last blog, the GIFTABULATOR<\/a> is the best tool to use when helping illustrate estate, financial and philanthropic planning. It helps you minimize taxes while making the world a better place through planned or major gifts.<\/p>\n\n\n\n

And — believe it or not — cash is not always king in the world of philanthropy. While many donors choose to donate using cash, it isn\u2019t always the right move. What often happens is that donors will sell stocks in order to give a tax donation. Unfortunately, selling appreciated assets leaves the donor with the responsibility of paying capital gains tax.<\/p>\n\n\n\n

Instead, they could select to gift their stocks to their charity of choice. This gives the donor a tax reduction and helps them avoid paying a capital gains tax in the process. Additionally, depending on the size and type of their gift, it could also lead to a reduction in their taxable estate.<\/p>\n\n\n\n

Calculating a Tax-Efficient donation is really easy when it can be visualized. First select\u00a0the Province you\u00a0live in. Let\u2019s select British Columbia for our example.<\/p>\n\n\n\n

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Then you\u2019ll be prompted to select an asset. For this\u00a0blog select Stock. You will see that\u00a0the current value of the asset is $100,000. Feel free to change the asset\u00a0to any\u00a0amount.<\/p>\n\n\n\n

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Giftabulator will then have the amount that you paid for your asset that is now worth\u00a0$100,000. Populated into the app is amount suggesting you paid $25,000.\u00a0You have a taxable capital gain of $75,000. $100,000 – $25,000. That math was\u00a0simple. Now with the information you have input Giftabulator will calculate how much\u00a0tax you owe on your capital gain if sold.<\/p>\n\n\n\n

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By inputting a donation amount of $10,000 you will see on the coloured charts your\u00a0$10,000 donation which\u00a0is illustrated in green. As well, you will see your tax credit from\u00a0your $10,000 donation of $4,529 in blue.\u00a0The red chart represents the tax you will owe from your $75,000 taxable capital gain.\u00a0With your $10,000 donation\u00a0your taxable capital gain has been reduced from $14,749 to\u00a0$10,220.\u00a0Finally, the actual cost of your $10,000\u00a0donation is illustrated in gold as $5,471.\u00a0<\/p>\n\n\n\n

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Including Every Donor in the Conversation<\/strong><\/p>\n\n\n\n

Recently, we came across the article Making the Most of Mid-Level Donors. The authors, Sarah DiJulio and Yoonhyung Lee, state, \u201cMid-level donors are often overlooked at non-profits, even though they are among the most generous and loyal supporters and may have the potential to give much more if they are treated well. How can your organization attract, keep, and inspire mid-level donors to give more?\u201d <\/p>\n\n\n\n

The reality is that these mid-level donors are the backbone of your organization\u2019s annual funding. The issue is how to convert many of these donors into major gift and planned giving donors. The key is to provide the tools that can illustrate the benefits associated with a larger donation and indicate where the funding can be sourced. Since most donors give from the \u201cwallet\u201d in the form of a credit card, cheque or cash, the ideal major gift should be sourced from appreciated assets with a taxable capital gain. <\/p>\n\n\n\n

Why is this important for your donors\u00a0to know? Illustrating a donation from an\u00a0appreciated asset with a taxable gain will help the donor understand\u00a0the benefit\u00a0associated with a donation on which they will be paying tax if not used partially or wholly\u00a0as a\u00a0charitable gift. After all, no one wants to pay tax, and you\u2019re providing them a\u00a0fulfilling alternative through a donation to your organization!<\/p>\n\n\n\n

Final thoughts<\/strong><\/p>\n\n\n\n

Over the next several weeks, we\u2019ll be discussing all of the ways that potential donors can give to your organization. In fact, so many may not know that the money that they have in stocks can become a charitable gift. That \u201cspare change\u201d they have lying around can create real change — especially if you include every donor in the conversation!<\/p>\n","protected":false},"excerpt":{"rendered":"

From Spare Change to Real Change:Enlightened Philanthropy and How to Achieve It For All In the previous blog, Why Visualization is the Key to Success, we talked about the importance of visualization to help donors, their families, and their advisors construct major and or planned gifts. This blog will continue the conversation, specifically focusing on how this visualization method pertains to … Continue reading From Spare Change To Real Change: Enlightened Philanthropy And How To Achieve It For All<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-464","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=464"}],"version-history":[{"count":1,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/464\/revisions"}],"predecessor-version":[{"id":471,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/464\/revisions\/471"}],"wp:attachment":[{"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}