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Stocks, Donor-Advised Funds, and IRAs

A Gift that Fights Hunger for Years to Come

By gifting appreciated stock, making distributions with your donor-advised fund (DAF), or making qualified charitable distributions (QCD )with your IRA, you can leave a legacy that fights hunger and empowers your neighbors long after your lifetime. This method of giving may provide significant tax benefits, making it a smart financial decision for you and your family as well.

If you have questions, please let us know! Contact Marian Eidson below or call 615-627-1564 to get in touch.

Donate Appreciated Stock

By directly transferring appreciated stock to Second Harvest Food Bank of Middle Tennessee instead of selling it yourself first, you can reduce or even eliminate paying federal capital gains tax on the transfer. Plus, you may be entitled to a significant tax deduction.
Second Harvest Employee, Bill

Ways to Give Appreciated Stock

Appreciated securities or mutual funds are most often used to support our work in the form of:

  • An outright gift. When you donate securities to Second Harvest Food Bank of Middle Tennessee, you receive the same income tax savings that you would if you wrote a check, but with the added benefit of eliminating capital gains taxes on the transfer, which can be as high as 20%.
  • A transfer on death (TOD) account. 

Please check with your financial advisor when considering making a gift of appreciated securities or mutual funds.

Give Through Your Donor-Advised Fund

Your donor-advised fund allows you to participate in the funding process with great flexibility by recommending a gift to Second Harvest Food Bank of Middle Tennessee with money you have already designated for this purpose. You can recommend a grant or recurring grants now to make an immediate impact or use your fund as a tool for future charitable gifts.

You can also create a lasting legacy by naming Second Harvest Food Bank of Middle Tennessee the beneficiary of the entire account or a percentage of the fund. With a percentage, you can create a family legacy of giving by naming your loved ones as your successor to continue recommending grants to charitable organizations. Contact your fund administrator for a beneficiary form.

If you still have questions about giving to Second Harvest with your DAF, we are happy to help. Please contact us below or call 615-627-1564.

Kren and George’s DAF Giving Story

Kren and George Teren have lived in Nashville since 1986 and have long been aware of Second Harvest. But it wasn’t until their adult daughter suggested an annual gift to the organization that the Terens began making meaningful financial contributions on a yearly basis.

While many people are interested in donating a portion of their income to charity, Kren and George uniquely aim to make their giving a whole-family decision.

“Because we can give back, we absolutely should!” says Kren. “And we want to involve our kids so they will learn about the impact of making charitable donations, have a voice of their own, and ultimately be inspired to give back in the future, on their own.”

The family donates to Second Harvest using a Donor-Advised Fund (DAF), because it helps simplify record-keeping of the tax deduction and streamlines making a gift.

"It is simpler, easier, and there is less paperwork to keep track of by using a DAF as opposed to giving to charitable organizations directly,” Kren explains.

Give with your IRA

When you support Second Harvest Food Bank of Middle Tennessee through your IRA, starting at age 70.5 you can make a qualified charitable distribution (QCD) up to $100,000 each year without having to pay income taxes on the gift amount. For married couples, if both spouses are 70.5 when distributions are made and both spouses have IRAs, then each spouse can exclude up to $100,000 for a total of up to $200,000 per year.

A unique benefit of this type of gift is that it will be put to use today, allowing you to see the impact your donation is making. Additionally, beginning the year you turn 73, you can use your gift to satisfy all or part of your required minimum distribution (RMD) for that year.

Since the gift doesn’t count as income, it can reduce your annual income level, which may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

If you have more questions about donating from your IRA, email Marian Eidson or call 615-627-1564.

Next Steps for Giving Stock, via DAF, or via IRA

  1. Seek the advice of your financial or legal advisor.
  2. If you include Second Harvest Food Bank of Middle Tennessee in your plans, please use our legal name and federal tax ID:
    Second Harvest Food Bank of Middle Tennessee
    331 Great Circle Road, Nashville, TN 37228
    Federal tax ID number: 62-1049447
  3. Please make sure the donor’s name is clearly identified and included with the gift when transferred, so the donor may be appropriately thanked and sent an acknowledgement letter for their gift.

The information provided does not, and is not intended to, constitute legal or financial advice; instead, all information, content, and materials available on this site are for general informational purposes only.

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