Make an Impact Without Your Wallet
A Cash-Free Way to Protect the Causes You Love
Your wealth is not just dollar bills.
The majority of estates in America are made up of homes, stocks, retirement benefits and insurance policies. Do you have a plan for how your estate will be distributed? Here’s one popular tax-savvy solution: Be charitable.
When you make charitable gifts to the Academy of Managed Care Pharmacy Foundation of stock, bonds, mutual funds or other appreciated assets (specifically those you have held for more than one year and have grown in value since you purchased them), you may enjoy two benefits:
- You qualify for a charitable deduction for the current fair market value of the asset.
- You do not pay capital gains tax on the asset.
This is one of the simplest and smartest ways to put your assets to the most good.
Examples of Non-Cash Opportunities
Here are some specific assets and the benefits you may receive when you use them to support the AMCP Foundation.
Stocks and Securities
When owned longer than one year, appreciated securities are deductible at their full present fair market value when you itemize. You will not pay tax on the appreciation. Here are three ways to donate these assets:
- If you’re ready to be out of that stock, simply give the securities to the Academy of Managed Care Pharmacy Foundation. If you have the physical securities, hand-deliver them or mail us the stocks and stock power separately. If you don’t have possession of the physical securities, instruct your broker to electronically transfer your intended shares and to notify us once the transfer is complete.
- If you want to keep the stocks as an investment, donate the securities to us and then buy more from your broker. You’ll get a higher cost basis in the new shares, which will save you capital gains tax in the future.
- If you own stock that’s selling for less than what you paid for it, sell those shares and use the loss to cut your taxes as allowed by law. Then contribute the proceeds from the sale to the Academy of Managed Care Pharmacy Foundation.
Depending on the unique circumstances of your gift, you may receive significant tax benefits. There are two common ways that people use life insurance for philanthropy:
- You can make us owner of the policy, which may result in current tax savings for you.
- You can name us as the beneficiary (or co-beneficiary) of an existing life insurance policy. After your lifetime, the proceeds of the policy support our mission.
Published in AMCP Foundation’s planned giving newsletter, Aligning Tomorrow’s Pathways, August 2021.