Donate securities over cash, study advises

Consumers making charitable donations could realize big tax savings if they donate securities instead of cash, according to a new survey from Fidelity Investments, the Boston mutual funds giant.

In a research report titled "Smart Giving," Fidelity noted that 10 million to 20 million US households have the potential to realize additional tax savings of $2.2 billion to $4.5 billion annually by donating securities with long-term appreciation - stocks, bonds, and mutual funds - instead of giving cash directly to charities.

Those savings are over and above the savings that donors receive from lowering their income taxes as a result of making the donation, said Fidelity, which offers a range of wealth-management services to consumers, including guidance on charitable giving.
(By Chris Reidy, Globe staff)