Gift stock is a great way to give. Donating defined stocks can be up to 20% more valuable than selling and donating cash, which can significantly impact and save you taxes.
Gifting stocks avoid federal capital gains tax, and most donors can claim income tax deductions for the entire market value of the store (state and local income tax deductions may be available in some areas).
When you donate the defined stock directly to a charity, your gift can be up to 20% because you avoid the taxes you incur on selling and donating cash. This means that more money is going to the work you support.
Whether you want to do it yourself or seek help from your financial advisor, donating stock with our online tool takes less than ten minutes.
The table below shows how your dollar moves beyond gifting stocks. The value of this direct donation of $ 50,000 in stock shares is approximately $ 3,000 more than selling the stock and donating cash.
Stocks | Cash | |
---|---|---|
Current fair market value |
$50,000 | $50,000 |
Federal capital gains tax |
$0 | $4,700 |
Federal capital gains tax | $0 | $2,325 |
Amount charity gets | $50,000 | $42,975 |
Income taxes avoided due to charitable deduction | $21,580 | $18,670 |
More than 200 nonprofit organizations use EcoWill to make stock donations easier.