Author Topic: Subsidized Charity  (Read 928 times)

JCfire

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Subsidized Charity
« on: September 01, 2016, 02:15:05 PM »
Just made my main charitable gift for this year.  I won't disclose the exact amount of the gift, but the ratios between the numbers below are all accurate.

I donated $1000 of after-tax money to GiveDirectly.  I got a 100% match from my employer, so the charity gets $2,000.  I grouped 3 years of planned charitable giving all into 2016, so I can take advantage of itemizing deductions (unusual for me), which means I save about 30% on federal and state income taxes, so the cost to me is about $700.

But wait, I donated appreciated stock with a cost basis of only 80% its current value.  Donating stock means I avoid paying 15% long term capital gains tax on the 20% of gain, so I saved another $30 of taxes, so the net cost to me fell to $670.

Between the tax planning and corporate match, the charity's benefit ($2000) is three times what it cost me ($670) to give.  So efficient!

stoaX

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Re: Subsidized Charity
« Reply #1 on: September 01, 2016, 02:18:42 PM »
Wow - my kid would say you have mad planning skills!  Good job.

HAPPYINAZ

  • Bristles
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Re: Subsidized Charity
« Reply #2 on: September 02, 2016, 09:48:17 AM »
nice!