Did you know that you may be able to avoid paying capital gains tax by donating stocks directly to Potomac Area Hostels? By donating your publicly traded securities or other investment assets you’ve owned for at least twelve months that have increased in market value after you acquired them, you can increase the effective amount of your donation and avoid capital gains tax. This holds true even under the current tax law, which has so many of us claiming the higher standard deduction.

And, if you have a retirement plan, such as an IRA, and you are subject to the annual required minimum distribution (RMD), you may also be able to direct a gift to Potomac Area Hostels from plan assets, which will exclude the donated assets from your annual income. This has same effect as you got by making an itemized tax-deductible gift under the old tax laws. Plus, the donated assets are excluded from other limitations as well. They are treated as an above-the-line deduction, and don’t affect your ability to claim the new standard deduction.

Potomac Area Hostels has a brokerage account with Charles Schwab (DTC Routing Number 0164) to accept donations of securities. The Potomac Area Hostels, Inc., account number is 9360-6160, and our Federal Tax ID Number is 85-1246031. Your broker can provide you with its Charitable Gift Transfer Letter of Authorization or other stock donation process forms. Please always consult with your tax or legal advisor before donating publicly traded securities or other investment or plan assets.