Donating stock or securities offers a number of benefits
- A federal income charitable contribution tax deduction based on the stock’s fair market value on the date of the gift (up to 30% of your adjusted gross income) if the stock was owned for more than one year;
- Carryover of the deduction for up to five additional years if the fair market value of the gift is more than 30% of your adjusted gross income; and
- Avoidance of capital gains tax that is due when you sell appreciated stock.
If the stock has decreased in value, selling it and making a cash gift is probably more beneficial. You can take a capital loss on federal taxes and still enjoy a charitable deduction of up to 50% of your adjusted gross income.
Stock owned for one year or less is considered a short-term asset and usually won’t produce attractive tax benefits.
For more information on stock or cryptocurrency donations, please contact:
Jen Adams (Head of Donor Relations and CFO): email@example.com
J. Jordan: firstname.lastname@example.org