- A Stock donation can be the ultimate charitable gift for your investment portfolio’s health. Donating stock to charity offers several benefits, making it a tax-efficient vehicle to maximize your influence while also reaping large financial rewards.
- Donors who provide appreciated stocks can avoid capital gains taxes and deduct the entire market value of their donation from their taxable income, increasing the value of their charitable contributions.
Read on to explore the advantages of donating stock to charity, including tax savings and increased donation value, and how AIF’s online stock tool makes the process seamless so it can be completed in a few minutes.
If you’re looking to make a significant charitable impact, donating stock can be a powerful and proactive choice. Stock donations are not just an alternative to cash contributions; they are a strategic way to leverage your investments for maximum philanthropic effect. Donating stock to charity might be the perfect solution for you! Read on to learn how stock donations are beneficial, seamless, secure, and one of the most tax-efficient ways to invest in AIF’s mission
Why Donating Stock Can Maximize Your Giving
Donating stock to charity offers numerous financial advantages and savings, while also amplifying your impact. You can donate appreciated stocks without paying capital gains taxes, allowing you to contribute more of your funds to charitable causes. To maximize your tax benefits, you can deduct the full fair market value (FMV) of your stock donation. In fact, you receive a tax deduction for the entire FMV of the shares on the donation date. For example, if you paid $200 for a stock originally, and now it’s worth $700, giving it away could put you in a lower tax bracket because it would take $700 out of your taxable income.
Why Donating Stock to Charity Can Benefit Both Parties
Giving a stock donation to a charitable organization has several benefits over cash contributions.
- Maximize Your Benefits from Tax Deduction: Since you aren’t selling the stock for cash, you are exempt from paying capital gains taxes on its appreciation, which can be as high as 20%. In addition, you can deduct the entire FMV of the donated stock from your taxable income. With these combined benefits, you can potentially donate more to charity than if you had to sell the shares and pay capital gains.
- Prevent Capital Gains Taxes: Typically, when you sell appreciated shares, you need to pay capital gains taxes on the difference between the purchase price and the selling price. This gain is known as capital gain. However, you can completely avoid this tax by directly donating stock to charity while supporting the cause you care about–a win-win situation!
- Give Higher Donation Value: By donating stock to charity, you can maximize your donation by giving the organization the full market value of the shares. This allows the charity to benefit more than if you had sold the stock and donated the after-tax proceeds.
Make A Stock Donation Seamlessly and Securely with AIF and The Giving Block
We understand that making a stock donation can be difficult to navigate. That’s why we’ve partnered with The Giving Block, a state-of-the-art, secure, and user-friendly platform that streamlines the process–so you can complete it online in a few steps. Here’s how it works:
- Visit AIF’s stock donation page.
- Complete and sign the stock donation form, hosted by The Giving Block, with your contact information, your broker information, and the stock you intend to donate.
- You will receive an email with a Letter of Instruction summarizing your intent to donate stock. Please review and send it to your broker.
- We will let you know once we receive your stock donation!
Turn your portfolio into purpose and impact millions of lives in India.
With AIF, your contributions can go a long way. For example, $1,000 can give 160 new mothers in rural areas Kangaroo Mother Care Kits to prevent hypothermia, a leading cause of newborn death in India.
