Three factors to consider when making charitable gifts

   During this season, gift-giving is probably on your mind. 
   But before you donate financial assets to charitable groups, you’ll want to consider three key factors.
   First, think about taxes. 
   By donating appreciated assets, such as stocks, you may receive a charitable deduction for the full market value of your gift. 
   Also, you may not be subject to the capital gains tax you might have to pay if you eventually sold the stock. 
   However, with recent tax law changes raising the standard deduction significantly, you may be less likely to itemize deductions, so talk to your tax advisor before making any large gifts.
   Your second consideration is your portfolio balance.
   If you repeatedly donate a certain type of asset, such as growth stocks, it could affect your investment mix in a way you hadn’t planned. 
   Consult with a financial professional to help ensure you maintain balance in your portfolio.
   Finally, evaluate the reputation of a charity. 
   A reputable charitable organization spends most of its money on its programs, not administrative costs.
   Ultimately, your charitable gifts can support worthy causes – while also fitting into your financial picture.
   This article was written by Edward Jones for use by your local Edward Jones Financial Advisors John Dickerson & Hawes Dickerson. Member SIPC.

 

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