As the stock market hits new highs every day, it is important that development directors are prepared for donors who might have the capacity and desire to give a year-end gift of appreciated stock.
In fact, you might actually be doing donors a favor to remind them!
If a donor (I’ll call her Sharon) writes a check to your organization for $1,000, she gets to add it to other charitable gifts that she lists on her itemized deductions. Don’t forget to send Sharon a really nice thank you note and receipt! If she is in the 25% federal tax bracket she gets a tax refund that is $250 higher than it would have been if she had NOT made the gift. Sharon’s gift to your charity only cost her $750 and you get $1,000!
But suppose Sharon gave you $1,000 worth of stock that she bought years ago for $500. She would get the same $1,000 charitable deduction as before AND she would avoid paying the capital gains tax on the $500 worth of appreciation. Assuming that Sharon would pay 15% tax on that gain, she saved herself $75 in extra taxes. Plus she gets $250 more in her tax refund for the $1,000 gift to your charity.
Send out a letter soon! If it is too late to mail a letter, then send out an email, especially to top donors. Donors like Sharon might even be more generous since they saved a bit more in taxes. And as always, make sure that they check with their tax preparer before making the gift of appreciated securities.
I’m sure you are worried about the extra $325 that Sharon saved? Who pays for that? Well, Uncle Sam picks up the tab since he wants to encourage us to be charitable to great organizations like yours. This almost makes preparing your taxes a little bit sweeter. Almost…
Yesterday, the YMCA of Florida’s First Coast celebrated the groundbreaking of a new facility in the Riverside area. This is an exciting time, and not just for the organization, but for the whole community, which is seeing a host of economic revitalization.
The project is generating a lot of public excitement this week, and will again during its grand opening, but if there’s one thing we know, it’s that capital campaigns aren’t about days like yesterday.
You’ve heard us say it over and over: Leadership is everything.
Leadership is tested not at the beginning or end of a campaign, but in the middle, where perseverance and determination make all the difference.
Countless conversations, strategy sessions, tough decisions, disappointments and dashed hopes lead up to a day like yesterday. Successful campaign leaders keep their focus and energy even when the spotlight is off.
But you know what else successful leaders do? They know when to celebrate!
From our team to yours… the amazing staff, volunteers and donors at the Jacksonville Y – congratulations on breaking ground for the Winston Family YMCA! This new Y will continue the important work you’ve been doing for that neighborhood and for your whole region.
Now, back to work. That Y isn’t going to build itself, is it?
Photo sources: Facebook.com