Thinking of Doing Charity And Personal Benefit at The Same Time? Stock Donations is The Answer
It’s always best to donate money in a charity than putting in a networking business. Considering the present times, one has to care about whole budgeting of the year and finances that are involved. Tax is one of the major factors that affect our yearly finance. And for this reason many people keep worried about how they are going to pay for their taxes if they had spend too much. This has an answer in donations which gives us an opportunity to leverage some benefit and doing a kind gesture at the same time. Stock donations are the latest trend and traditional methods of donations are also in use.
There are charities that have adapted to accepting the stock donations and others working on the traditional lines are still not reaping this benefit. Donating stock when they are appreciated in their value is a very wise option and even experts recommend this kind of donations. Suppose you buy some stocks a year ago. After one year you see an appreciation in their value. Now if you wish to convert them into cash then you need to pay the tax on profit that was incurred in the one year period. This way, you do not avail the actual amount that you desire. But if you donate these stocks to come charity then you need not worry about the tax benefits as they are of the same appreciated value. On the other hand, the charitable organization is benefitted hugely by your kind act. Too many people donating in stocks thus make a win-win situation for themselves as well as the charities to which they donate.
Now, you must know few procedural steps that have to be followed so as to donate the stocks. Foremost, you will need to select the charity to which you would like to make the donation. Once you discover a good charity that is supporting a cause favoured by you; you can ask them whether or not they accept the donation in form of stocks. If their answer is yes, you just need to get their brokerage account details.
In the next step, you will have to visit your broker’s office and detail him about the stocks you wish to donate. As the decision is made the broker will continue with the stock donating formalities. He will need your signatures at few places to confirm the transferring to the brokerage account of the charitable organization. In a few business days your stocks are transferred to that specific charity. You save the documents for the tax benefits that await you ahead.