Benefits of donating appreciated stock:
If you are planning to make significant contributions this year, consider looking through your portfolio before you write a check! Interfaith Alliance will be allowed to sell your gift of stock at full value without any cost for capital gains.
Regardless of what you originally paid for the stock, donating appreciated stock that is at least one year old to a charity allows you to:
- avoid capital gains tax and
- deduct the full fair market value of the securities on the date of transfer from your income, if you itemize deductions.
If you sold the stock and donated the proceeds, you would have to pay capital gains on any appreciation since purchase. Donating appreciated stock to Interfaith Alliance allows you to make a valuable gift that provides more benefit to us than it originally cost you.
You purchase stock for $15,000. It appreciates to a value of $25,000. You donate that $25,000 in stock to a charity. As long as you’ve held the stock for at least a year, you can claim the full $25,000 as a charitable gift for tax purposes, and you are not liable for $1,500 (15% of the appreciated value) in capital gains fees.
If you have any questions about stock gifts, please contact email@example.com.