An Investor’s Guide to Charitable Giving

An Investor’s Guide to Charitable Giving

Are you an experienced investor and want to know more about giving to a charitable organization? Then look no further! Rather than simply donating cash to your favorite charities, WaterStone provides you with an opportunity to donate your shares and/or business interests.

Successful investors and business owners have a unique opportunity to greatly impact the operations of their favorite charities through the donation of their appreciated assets. With the donation of appreciated assets, your preferred charity will benefit from your contribution and you will receive an immediate tax deduction in the year of the gift.

Not only will you receive a fair market value tax deduction, but with a gift of marketable securities, you can also avoid capital gains for a double tax benefit. If gifting privately held business interests, a gift will allow you to avoid recognition of the income attributable to the donated portion and in the event of a future sale will allow you to avoid capital gains as well!

Consider giving stock directly to a WaterStone Giving Fund to save the most in taxes and maximize your charitable giving.

Donating Shares and Business Interests as Assets

There are several ways in which you can donate your shares to your preferred charities. Some charities are able to receive direct contributions of marketable securities, but you can always donate stock through a Giving Fund, a.k.a. a donor-advised fund. Whether you have investments in the stock market or ownership of a privately-held S-Corp, C-Corp, or Limited Partnership, consider using these assets to support your favorite charities. The experts at WaterStone will provide guidance about what you can do with your capital and how to give efficiently to maximize your tax savings and yield the largest impact for the causes that you are passionate about.

Why Donate Your Shares Through WaterStone?

Once you decide which stocks or business interests to contribute to bypass capital gains and receive a charitable deduction, take advantage of the many benefits of a donor-advised fund to recommend grants to your favorite charities. Here are some of the additional benefits to using a Giving Fund at WaterStone:

  • Anonymity: By sending out your charitable donations with WaterStone, you have the option to give your gifts anonymously.
  • Immediate Tax Deduction: Donations to WaterStone qualify for an immediate charitable tax deduction in the year of your gift while allowing you to make grants on your own timeline. You will receive a single cumulative annual tax receipt to claim on your tax return.
  • Charities Are Vetted and Verified: Our experts will perform due diligence and vet any charity you recommend to make sure your gift is going to a qualified 501(c)(3) organization.
  • Tax-Free Growth: Grow your Giving Fund tax-free. Investments can be managed in a WaterStone investment pool or with a donor-selected investment advisor (for qualified accounts).
  • Create a Legacy: Name a successor advisor and continue giving for generations to come. Involve your family and cultivate a legacy of generosity.


With WaterStone Giving Funds, you are involved every step of the way. From the donation of your appreciated asset, to the creation of your fund purpose, to granting money out to your favorite charities over your customized timeline. Our experienced team is here to guide you through it all and make sure that you are maximizing your gift to the Kingdom.

Interested in learning more? Get in touch with us today — we are happy to speak with you and help guide you in your charitable giving.

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