The simplest way to donate to Save the Children is through gifts of cash, however this may not always be the most tax-efficient way to give.
Gifts of other assets, especially appreciated financial assets, may help you avoid capital gains taxes. Because Save the Children is a charitable tax-exempt organization, it can accept appreciated assets and then liquidate them without having to recognize capital gains. The donor, in turn, may be allowed to take a charitable deduction in his income tax reporting for the full value of contributed assets.
An example:
A donor wishes to make a $10,000 contribution to Save the Children. He owns stock purchased some years ago for $2,000, which has a current market value of $10,000, giving rise to a capital gain of $8,000 ($10,000 - $2,000 = $8,000) on which capital gains tax would be due if the stock were sold.
The donor could avoid paying any tax on the capital gain by contributing the stock directly to Save the Children. And he is still eligible for an income tax deduction for the full $10,000 as a charitable gift.
Gifts of appreciated securities:
Donations of publicly traded stocks or other investments that you have held for more than one year generally escape capital gains taxes and allow an income tax deduction based on the fair market value on the date of the gift. For more information on donating traded stocks chlck here.
Gifts of real estate:
Many real estate holdings have appreciated greatly in recent years and may be subject to capital gains taxes if sold. Donation of real estate directly to Save the Children or through the use of a charitable remainder trust often minimizes these taxes and generally provides an income tax deduction.
Gifts of other assets:
Other assets, such as collectibles or personal property are sometimes offered as donations to Save the Children and are considered on a case-by-case basis. A donation of such assets may not be eligible for advantageous treatment as a charitable deduction if they are unrelated to the charitable purposes of Save the Children.
The Gift Acceptance Committee at Save the Children:
All contributions of non-cash assets to Save the Children are subject to review by our Gift Acceptance Committee. Rarely would Save the Children accept gifts of assets that would incur risk or cost to the organization. We always strongly recommended that you consult your tax and legal advisors before making financial decisions relating to charitable donations.
