Scouting supporters usually make donations in cash by simply writing a check. Cash donations are always valued, but donors can use appreciated assets in lieu of cash to support their favorite Scouting cause. Giving appreciated assets not only benefits Scouting, but this strategy can also have positive tax advantages for donors.

       Donors may have significant unrealized gains in assets such as real estate, stocks, bonds, mutual funds, life insurance, etc. If the asset is sold to fund a cash donation, the donor will incur capital gains tax on the amount of the appreciation, usually between 15-20% of the total lifetime appreciation – a potentially significant amount.

      A smarter strategy may be to simply donate the appreciated asset to Scouting to avoid capital gains tax.

Donating appreciated assets offers two key benefits for donors:

• Avoiding capital gains tax – Donating assets with long-term appreciation generally means there is no capital gains tax on the appreciation.

• Income tax deduction – Donors can claim an income tax deduction for the full fair market value of the donated asset, which can be up to 30% of the donor’s adjusted gross income for commonly held stock.

       For donors who are 70.5+ years old, another smart strategy is giving from your Individual Retirement Account. This type of giving is called a Qualified Charitable Distribution (“QCD”) and it can help you reduce income taxes on the required minimum distributions that IRA holders must take starting at age 73.

       If you are considering a donation to your local Council, our National Foundation, or another Scouting entity, a CPA or financial advisor can help you minimize your tax liability and maximize the value and impact of your gift by choosing the right strategy or combination of strategies for your individual situation. 

       Courtenay Miller is an Eagle Scout (1973) and a 40+ year adult volunteer Scouter. He has filled many roles through the years with the most rewarding as Scoutmaster for 10 years. He devotes both time and money to Scouts because of the positive impact that the program has made in his life and in the lives of the young men who passed through his troop over the years. Professionally, he is a wealth manager who advises his clients on accumulation and distribution strategies.