If you are like so many others, your financial resources may be tied up in non-cash assets. From a tax standpoint, you may be better off donating something other than cash. When you make charitable gifts of appreciated assets (assets you have held for over one year and that have grown in value) to our charity, such as stock, bonds or mutual funds, you receive a double tax benefit. You are entitled to a charitable deduction for the current fair market value of your securities and the capital gain is not taxed, meaning you receive a double tax break from the deduction and avoid reporting capital gain that would otherwise be due. By using appreciated assets, the gift actually costs you less than gifts of cash! Another tax-wise alternative is to use your appreciated property to fund life income gifts, such as gift annuities or charitable remainder trusts. This kind of gift allows you to avoid tax on some or all of your capital gain, and you will receive income for life.
Here are some of the gifts and associated benefits you should know about.