Tax Benefits of Philanthropy: Part One of a Series
Unlocking the Potential of Appreciated Stock and Qualified Charitable Distributions 

The Biggs Museum of American Art thrives because of the generosity of its supporters. Many of our patrons are passionate about giving back—and just as importantly, about giving smart. That’s why we’re launching a new series: Tax Benefits of Philanthropy. Whether you’re interested in maximizing your impact or minimizing your tax burden (or both), this series will provide essential information to guide your charitable planning. 

In this first installment, we focus on two increasingly popular giving strategies: gifts of appreciated stock and Qualified Charitable Distributions (QCDs). Both offer significant tax advantages while supporting the Museum’s mission.  

Giving Appreciated Stock 

If you hold stock that has increased in value, donating shares directly to The Biggs can be more beneficial than selling them and giving the cash proceeds. 

Benefits include: 

  • Avoid Capital Gains Tax: By donating appreciated securities held for more than one year, you avoid paying capital gains tax that would apply if you sold the asset. 
  • Receive a Full Fair Market Value Deduction: You can typically deduct the full fair market value of the asset (up to 30% of your adjusted gross income), making this an especially efficient way to give. 

This method is ideal for supporters who want to make a meaningful contribution and have invested wisely over time. It’s also surprisingly easy to execute with the help of your financial advisor. 

Laird Stabler is a longstanding Biggs Society member and he and his wife Wendie routinely make their annual gift through appreciated stock. “It’s just plain easy to do give in this way,” says Laird. “I make a call to the financial institution that holds my shares and instruct them; it saves me having to write a check and I avoid tax consequences of selling stock.”  

 

Qualified Charitable Distributions (QCDs) 

If you’re 70½ or older, a QCD allows you to transfer up to $108,000 annually directly from your IRA to a qualified charity like The Biggs—without counting it as taxable income. 

Why this matters: 

  • Tax-Free Giving: The amount of the QCD is excluded from your taxable income, which can help reduce your overall tax liability, including on Social Security and Medicare premiums. 
  • Satisfy Your Required Minimum Distribution (RMD): If you’re 73 or older, QCDs can count toward your RMD, enabling you to fulfill this obligation while supporting causes you love. 

This is a tax-smart strategy particularly well-suited for retirees looking to make a lasting difference. 

Looking Ahead 

In future articles, we’ll delve into other giving vehicles, including: 

  • Donor Advised Funds (DAFs) – flexible accounts that allow you to plan and recommend grants over time 
  • Gifts of Art or Real Property – unique donations that can enhance the museum’s collection or facilities 

As always, we encourage you to consult with your financial or tax advisor before making any charitable gift. When working with your financial institution, always remind them to clearly associate your name with the transaction so that The Biggs may issue an acknowledgement and thank you directly. 

Supporting The Biggs Museum not only supports the arts and our institution — it can also be a powerful tool in your personal financial strategy. Stay tuned for more insights in our Tax Benefits of Philanthropy series. 

To learn more about making a gift of appreciated stock or a QCD to The Biggs, or to join our Biggs Society, contact Sandra James, Deputy Director: (302) 760-5302. 

Let your generosity make a difference—smartly and strategically. 

We’d like to acknowledge our friends at Bryn Mawr Trust for their verification of the accuracy of information contained in this article; however, the information presented here is not tax or legal advice and donors must consult their own tax advisors for advice specific to their personal situation. 

The Biggs Museum of American Art is a 501(c)(3) nonprofit organization. Contributions are tax-deductible to the extent allowed by law.