Donating stock can be a tax efficient way to support the mission of the BMW MOA Foundation, which is to preserve the rich heritage of motorcycling by advancing rider skills, education, and training. If you own stocks, mutual funds, or other securities that have increased in value, gifting them directly to the Foundation, a registered 501c3 charity, could unlock significant benefits, including a potentially larger charitable deduction and a detour around capital gains taxes.
When you donate appreciated stock that you’ve held for more than a year (long-term tax status) and you itemize deductions, you may be able to deduct the full fair market value of the security on the date of your gift, up to 30% of your adjusted gross income (AGI). At the same time, you would avoid the capital gains speed trap tax on the increased value. When we receive the stock, the tax-exempt status of the Foundation allows us to sell the securities without a tax penalty. We both benefit more this way than you would if selling the stocks yourself, paying the tax yourself, and then donating the remainder. (Note: As with any transaction that could affect your taxes, it is important to consult your tax advisor or financial planner to ensure that you are aware of the min./max. limits of deductibility.)
As an example, if you bought shares of XYZ for $1,000 a few years ago, and they are now worth $5,000 – you should be smiling ear-to-ear under your helmet. Unfortunately, you will get hit harder than that cicada embedded in your visor if you sell those shares yourself. That’s because you will have to pay the capital gains tax (20%) on the $4,000 of appreciation. By donating your stock directly to the Foundation instead, you can claim a full $5,000 charitable deduction and avoid the capital gains tax. The Foundation receives your full $5,000 gift in support of the Safe Miles Endowment or another fund you designate. Ultimately, these types of donations fuel our goal to create perpetual and sustainable motorcycle training funds availability. Your generosity will help us get there.
If you are interested, contact any member of the MOA Foundation Board for more information. The process isn’t complicated – it’s much easier than fixing a flat in the rain. At the end of the year, we will provide you with a statement of the fair market value of the donation on the date of your gift. This is a neat way to share your success with us. Then start your bike, pull up the kickstand, set your destination and head-out for a long ride; recognizing that your donation will help make motorcycle riding safer.