As an estate planning, tax, or wealth advisor, you play a key role in helping clients align their charitable goals with tax-efficient strategies. Yet many advisors don’t consistently incorporate charitable planning into client conversations—often because it can be difficult to know where to start.

One of the simplest and most effective entry points is a discussion about donating appreciated assets.

Rather than writing a check, clients can often give appreciated securities or real estate—unlocking additional tax benefits while supporting the causes they care about. A straightforward example can help illustrate the impact:

A Simple Example

Assume a client, Alice, earns more than $750,000 annually and plans to make a $10,000 charitable gift. She is considering donating cash or appreciated stock. Alice also plans to itemize her deductions.

Alice owns shares of Apple purchased years ago for $2,000 that are now worth $10,000. She also has sufficient cash on hand to make the gift.

Under current OBBBA law, charitable contributions are subject to a 0.5% of AGI floor, and the marginal tax benefit of the charitable contribution is limited to 35% for taxpayers in the top bracket.

If Alice gives $10,000 in cash:

• Her contribution is reduced by the 0.5% AGI floor (approximately $3,750) resulting in an allowable deduction of $6,250.
• Because Alice is in the 37% bracket, the benefit of her itemized deduction is limited to 35% of the allowable deduction, producing a tax benefit of approximately $2,188 ($6,250 x 35%)
• Her net after-tax cost is $7,812 ($10,000 minus $2,188).

If, instead, she donates the appreciated stock:

• She receives the same $6,250 charitable deduction (after application of the AGI floor rule), generating a tax benefit of approximately $2,188
• She avoids capital gains tax on the $8,000 of appreciation (approximately $1,904 at a 23.8% rate)
• This reduces the net cost of the $10,000 gift to $5,908 ($10,000 minus $2,188 minus $1,904).

The result: the same charitable impact, at a significantly lower after-tax cost.

Why This Matters

For many clients, particularly those with long-held investments or concentrated positions, appreciated assets present an opportunity to give more efficiently. These strategies can also open the door to broader planning conversations, including:

• Managing concentrated stock positions
• Reducing future capital gains exposure
• Structuring multi-year or legacy giving
• Involving family members in philanthropy

How DuPage Foundation Can Help

DuPage Foundation works alongside professional advisors to evaluate charitable giving strategies and implement solutions that align with clients’ financial and philanthropic goals. Whether through donor-advised funds, community-focused endowments, or other vehicles, our team can help simplify the process to maximize your clients’ benefits and impact.

Want to learn more about charitable giving opportunities for you or your clients? Contact Natalie Knight, vice president for advancement, at natalie@dupagefoundation.org or 630.598.5291.

This content is provided for informational purposes only. DuPage Foundation does not provide legal or tax advice and recommends that you consult with your tax and legal advisors and other members of your professional advisor team prior to making a significant charitable gift.