Your Year-End Strategy

It’s worth raising when a client holds an overweighted position in a single stock, wants to diversify or reduce their tax burden, and is already charitably inclined or open to giving. If a client mentions they’re thinking of selling a stock soon, that’s the moment to act — before the sale, not after.

The earlier the gift, the more tax-efficient the outcome. In-kind gifts must be completed before December 31 to count toward that year’s taxes, and donating before any liquidation avoids triggering capital gains. The stock must also have been held for more than one year to qualify for a full fair-market-value deduction.

A few client-tested phrases: “If giving is part of your financial goals, there’s a way to reduce taxes and create lasting impact using your appreciated stock.” Or: “Instead of donating cash, you may want to donate shares directly, it’s often more efficient and more impactful.”

The advisor spots the opportunity, starts the conversation, aligns it with the client’s broader financial strategy, and guides them through their impact goals. Ren, in partnership with its sponsoring charities, provides the strategic expertise, handles administrative processing, works with the client’s existing custodian, and keeps the advisor in control of investment strategy.

Ren’s Private Wealth Guide covers complex asset timing and tax strategy, integrating philanthropy with a business exit, and conversation mastery for high-net-worth clients.