What to Know About Donating Stocks or Mutual Funds

While volunteering is not something for everyone, there are now many more ways to give than perhaps ever before. In this day and age most people are proud to speak of their investment portfolio because it reflects a mindfulness of how to use existing capital to make more money and has become very popular among workers who want to plan for their future and/or supplement their income. If you are lucky enough to be someone who is successful at investing, consider that you can now use that skill to make a difference in your community while also enjoying the personal growth and rewards of having cared about the needs of those whom are suffering.

Additionally, donating stocks and mutual funds offers certain tax benefits that you may or may not realize. For example, if you find that you have some shares that pay low dividends or have hit their maximum value and you want to eliminate them, you can donate them without having to pay a capital gains tax. An important thing to know is that the actual shares must be donated as opposed to the proceeds from the sale of shares, as this will change the nature of the donation and affect the eligibility for tax benefits. Donations can also be structured to bring about certain tax or estate benefits, depending on what you would like to donate and the specific results you would like to see.

Knowing your own expertise is one thing, but also be sure that the charity to which you donate is set up so that you will receive the maximum tax deductions for your donation. One good way to check an organization’s legitimacy is by finding out whether they are an Officially Recognized IRS 501 (c) (3) Charity. Most charitable groups will have an easy-to-find web site and if they are officially recognized by the IRS, then this information should be advertised in a prominent spot as a selling point for newcomers.

Another important thing to look for is a charity that has made the process easy and free of complications. You should not have to interrupt your schedule for unnecessary meetings or paperwork that could be prevented by dealing with a reputable business that has experience with such transactions and will handle the legwork for you. The process should be as simple as providing your broker’s name and contact information, and the names and numbers of shares you wish to donate. Again, beware of any transaction that gets to be cumbersome or time-consuming, as this means that the group has not done their share of the work and may not be very adept at using your donation to its maximum potential.

Donating Stocks or Mutual Funds to Volunteers of America

            By donating stocks or mutual funds to Volunteers of America, you will have the comfort and satisfaction of knowing that you will receive the maximum tax deduction available, and that .88 cents of every dollar donated goes directly toward funding that helps veterans, children, families, seniors, and persons with disabilities. A quick visit to www.voagno.org or a phone call to (504) 482-2130 will show you that Volunteers of America Greater New Orleans is an Officially Recognized IRS 501 (c) (3) Charity and their experts have done all the preparation needed to guide you through your donation with a simple exchange of information. Donations can also be made by fax or mail; just use the contact information above and make a difference in someone’s life today!

One Man’s Trash is Another Man’s Treasure

Remember that even though you have been driving your car around for years and are ready to get rid of it, it’s still a valuable asset. Whether your vehicle is just out of style or is up on blocks and only good for parts, it’s still good for something. This means you should:

1. Find Out Its Value. You’re entitled to a tax deduction equal to the car’s value. Check Kelly Blue Book (KBB.com) to find out how much your vehicle is worth. Keep in mind that if the car is not in drivable condition and it’s also not worth much, some charities might not be willing to pay for a tow company to pick it up. Cases like this are rare, and a representative of your charity organization will be able to offer a solution if this happens to you.
2. Fill Out Paperwork. For many people, donating a car, truck, motorcycle, or boat is one of the largest donations they will ever give. Don’t miss the opportunity to get credit for this on your taxes. Most charities will be able to provide the correct paperwork, and will help you fill it out correctly.
3. Clean it Up. Don’t bother taking the vehicle to get detailed (unless you want to be extra nice), but do clean out the glove compartment and trunk, make sure there’s nothing under the seats, and throw away any trash or old cigarette butts.
4. Make it Accessible. Make sure the car is easy to get to. Take it out of the garage, or at least make sure it’s easy to move. Clear off any objects that are around, under or on it that could prevent the organization from easily taking the car away.
5. Plan Ahead. Many charity groups will come and pick your car up for you at no cost. Most charities don’t need you to be present, but if you must, arrange a pick up time that fits your schedule. Remember that the charity workers have a schedule to keep, too.
6.  Hand Over Keys and Title. Since donating a vehicle to charity includes ceding ownership, you’ll need to have the car’s title documents. Make sure to hand over any keys you have for the vehicle, including separate keys for the trunk or gas tank. If you will not be present when the car is taken, leave the keys, title and owner’s manual under the dashboard.
7. Remove License Plates. Depending on your state of residency, you may need to remove your license plates. Check with the charity to see if your plates should remain with you, or on the car.

Want to Donate a Car in Louisiana?

The Greater New Orleans Volunteers of America makes it easy for people in the Gulf Coast region to donate vehicles for a great cause. If you’re interested in using your car to make a difference, donate your vehicle to the VOA. For more information on how your donation helps children, the elderly, and the disabled, visit www.voagno.org or speak to a representative at (504) 525-2179.