#GivingTuesday
Giving Tuesday
Friends, family & clients:
Today is Giving Tuesday. We reflect on how incredibly fortunate we are compared to so many who are suffering due to the pandemic. When we began giving to the LA Food Bank a few years ago, they were feeding 300,000 food-insecure citizens a month. This number has skyrocketed due to the Covid crisis to 900,000 per month! Sadly, the economic fallout of this crisis is being felt by the most vulnerable among us—lower wage, service workers, who through no fault of their own, have lost their job or have been furloughed. Think about the folks at your favorite restaurant, or the many who used to serve us drinks at our favorite music venues. The government is not doing enough. We need to help. We donated $10,000 today: $5,000 to the LA Food Bank, and $200 each to the 26 food banks where our clients reside (listed below). We understand many of you have been negatively impacted by the pandemic. But for those who are in a position to give, please click on your city below and donate whatever you can.
Your customer loyalty is what allows us to be responsible global citizens, we are forever grateful. Please scroll down to learn about a smarter way to give, and potentially reduce your tax bill.
A Smarter Way to Give (by Jerry Newman, CFP)
If you’re considering charitable donations this year, please remember that cash is not the only option.
A great idea for charitable giving is donating highly appreciated stock, whether directly to a charity, or through a Donor Advised Fund. You avoid capital gains tax on donated shares and receive a tax deduction. This benefits your portfolio as certain stocks may represent too large of a position with respect to diversification.
Certain tech stocks have appreciated substantially over the past decade. Prudent risk management entails rebalancing your portfolio, which may call for selling highly appreciated shares. Unfortunately, this often results in a large tax bill.
Here’s the 10 year cumulative return for a few tech stocks (thru 11/27/20):
Amazon +1,703%
Apple +1,101%
Google +505%
Donor Advised Funds are very popular due to their ease of setup and options, which offers greater flexibility and control. The funds may go to multiple charities and be donated in the future while receiving an immediate tax deduction.
The basics of Donor Advised Funds:
Minimum investment, $5K to fund the account, irrevocable (no startup costs)
Immediate tax benefit
Gift with cash or securities (eliminate capital gains tax on highly appreciated stock)
Charles Schwab Charitable is the custodian
The charity must be a public charity qualified under section 501c3 by the IRS
I recommend you consult with your CPA regarding donation limits and potential tax benefits.
Please don’t hesitate to reach out to learn more.
Thank you!
-randy