From the Investment Committee: Sharing the Gift of Stock

NMCF is fortunate to have volunteers who are knowledgeable in their field and willing to share their expertise with us. Recently, Investment Committee Chair, David Bruner, a financial consultant in Albuquerque, shared some helpful advice:

“Generally speaking, it is more advantageous to donate appreciated stock rather than cash. Gifting stock eliminates capital gains tax on the appreciation and still allows a tax deduction for the full market value for the donor. The beauty is that it often allows donors to give up to 23.8% more to charity compared to selling the stock and donating the cash proceeds. That said, you should always consult your tax professional for your unique circumstances.”

Your donation of stock is a win-win:

Increased Impact for you as a donor: as a tax-exempt organization, NMCF receives the full, pre-tax value of the shares, allowing us to put more dollars to work if you pay taxes on the gains before donating.
Preservation of Cash for you as a donor: You can support a charitable cause while keeping your cash reserves for other investments or expenses.
Diversify your portfolio: Folks with highly appreciated stock often won’t sell it due to adverse tax consequences leading to concentrated holdings. Donating part of a large position may also be helpful in “de-risking” a portfolio.

At the Foundation, we work often with people who donate gifts of stock. These donations can be directed to support NMCF’s grants and operations. And, it’s also possible to make this donation to a fund held at the Foundation or to any of the fiscally sponsored organizations we serve.

To make a stock donation, grab the instructions here! We will get back to you with an acknowledgement letter with all the info you’ll need to complete for next year’s tax forms. Thanks for sharing your gift in support of a healthy nonprofit sector in New Mexico.