News

Planned gifts that help children today

Mar 18, 2015

Not all planned gifts are donations that make their impact far into the future. In fact, stock donations are a great way to make an impact today—both for you and for the Kiwanis International Foundation.

A donor who donates an appreciated stock or mutual fund directly to the Kiwanis International Foundation avoids paying taxes on the gain and also is able to use the full fair market value of the security as a tax deduction. For instance, consider a case where a donor sells a stock to make a donation. After paying the capital gains tax on the stock, the contribution to the Kiwanis International Foundation is roughly 20 percent smaller. Then when it is time to complete his or her taxes, the donor has a smaller charitable deduction. Giving the stock directly to the foundation helps the donor avoid taxes and helps the foundation serve more children around the world.

Another situation that might exist is a donor considering making a US$1,000 cash donation to join the George F. Hixson Fellowship for the Kiwanis Children’s Fund or US$1,250 to join the Walter Zeller Fellowship for The Eliminate Project. The donor also has the same amount in a stock that has grown substantially over its lifetime. Eventually, the donor will sell that stock and pay taxes on the gains. However, donating the stock directly to the foundation allows the donor to avoid ever paying tax on the gains. And if the stock is an important part of the donor’s portfolio, he can instead use the cash he was planning on using for the donation to purchase the stock back at a new cost basis.

In order to qualify as a long­-term holding for tax purposes, securities must be held for more than one year. Be sure to instruct your stock broker to transfer the donation directly to the Kiwanis International Foundation, rather than selling the stock and sending a check for the proceeds.

If you’re interested in making a stock or mutual fund contribution to the Kiwanis International Foundation, please contact manager of major and planned giving Steve Hinson at shinson@kiwanis.org​ or +1-317­-217-6234.

Please remember that the Kiwanis International Foundation does not provide financial or legal advice. You should always consult your financial and legal advisors about your personal situation before proceeding with your gift.