As with gifts of other long-term appreciated assets, donating real estate to a charitable organization, such as a donor advised fund (DAF) at the Omaha Community Foundation, is generally deductible at the property’s fair market value at the time of the gift and avoids capital gains taxes. That means the charity will receive more value from the property donation than if the donor sold the property then donated the proceeds. A real estate donation can also support nonprofits for years to come with a charitable remainder trust (CRT). The trust produces income for your client during their lifetime, then the remainder goes to a charitable organization of their choice named as the beneficiary. Naming a DAF at the Omaha Community Foundation as a beneficiary has a variety of benefits: the ability to support organizations directly from the fund, working with the Foundation to leverage our deep knowledge of the community and its needs, and building a lasting legacy your client’s family can continue to participate in. The income tax deduction takes place when the property is transferred into the trust based on the present value of the assets that will eventually go to the charity. Business Interests & Stocks Business owners can also take advantage of tax-wise charitable giving. If your client plans to sell a business, pass it to the next generation, or holds longterm, highly appreciated stock, they should consider donating some of the closely held or publicly traded stock to their favorite nonprofit organization. Donating stock outright avoids capital gains tax. The transaction results in more dollars to support causes than they would have had if they had sold the asset, paid capital gains, and given the remaining proceeds to charity. This is the perfect time of the year to discuss with your clients how to enhance tax planning while supporting their community. If you have any questions about charitable giving, reach out to the team at the Omaha Community Foundation about ways to increase impact with the most tax-effective method. Contact Gift Acceptance Manager Katie French McGill at (402) 884-1757 or catherine@omahafoundation.org, or Vice President of Donor Services Kelli Cavey at (402) 614-9510 or kelli@omahafoundation.org. Disclaimer: This article provides an overview of the possible tax advantages of donating non-cash assets and is not intended to provide tax or legal guidance. The Omaha Community Foundation recommends discussing these strategies with an accountant, financial advisor, or attorney. Your clients rely on your guidance to make important financial decisions. When it comes to charitable giving, we can partner with you to simplify their giving and amplify their impact. Your Partner in Philanthropy » omahafoundation.org/advisors 29 www.nescpa.org
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