Scott and Mariah Butler recently met with their wealth advisor, Jennifer, to review their investment portfolio. Jennifer recommended rebalancing their holdings to better match their goals, which would involve selling certain securities. The Butlers hesitated because selling would trigger capital gains taxes.  

Since the couple regularly supported several charities with cash gifts, Jennifer asked whether they had ever considered donating stock instead. They hadn’t, but were curious. She explained that many of her clients now donate appreciated securities rather than cash, enabling them to increase their charitable impact while still receiving an income tax deduction. She also noted that some donors “bunch” several years of gifts into a single year to maximize tax benefits.  

Jennifer suggested that Scott and Mariah transfer stock equal to three to five years of their typical charitable giving into a Donor Advised Fund at Community Foundation Tampa Bay. By donating appreciated shares, they would receive an income tax deduction based on the stock’s fair market value and avoid the capital gains taxes they would otherwise owe. They could then recommend grants from their fund to their favorite charities over the coming years.  

The Butlers were excited about this strategy. They opened a fund with the Foundation and made an initial stock gift equal to five years of their usual contributions. They look forward to recommending grants and continuing to make additional stock gifts to their fund in the future.