Bayer’s proposed acquisition of Monsanto promises to be a boon to investors but it may also come with a large tax bill for many Monsanto shareholders. Obviously, you’ll want to discuss tax strategies with a financial advisor, but the other party you could bring to table is your favorite charity.
Did you know that making a gift of appreciated securities is one of the most tax efficient ways to give? Not only do you get a charitable tax deduction, but you may be able to avoid the capital gains tax on the donated stocks. The charity sells the securities, so you have no capital gains to be taxed.
Corporate acquisitions like the potential Bayer-Monsanto deal can be complex. Generally, you will want to make the gift to charity before the deal is finalized and announced in order to maximize the tax benefits.
If you’re a financial advisor, or a nonprofit organization, this is something you should discuss with your clients or donors. It may save them a substantial amount of taxes, while providing significant funding for charity.
So how do you give stocks to a charity? That can be fairly involved, but it’s something YouthBridge Community Foundation manages for philanthropists every day. At YouthBridge, you can easily set up a donor-advised fund to donate appreciated securities like Monsanto stock.
You don’t have to have a specific charity or cause in mind to set up a donor-advised fund. You can set it up now to receive immediate tax benefits, and then make grants to your charities at any time in the future. YouthBridge handles all the paperwork, the due diligence, and the grant process. You simply enjoy the giving, and the tax benefits.
Contact YouthBridge Community Foundation or visit YouthBridge.org to learn more about charitable funds, and how to give appreciated securities like stocks, bonds or mutual funds.
Call YouthBridge at 314-985-6778 or visit YouthBridge.org.
YouthBridge Community Foundation does not provide tax, legal or accounting advice. Always seek the advice of your own financial advisor, attorney or accountant before any transaction.