Stock donations are tax-wise, usually offering two-fold tax savings (please consult your tax advisor). Here is a summary of Fidelity’s Four Reasons to Give Stocks to Charity:
You can give more
By donating stock that has appreciated for more than a year, you avoid capital gains tax, which means you are actually giving 20 percent more than if you sold the stock and made a cash donation.
You can potentially reduce future capital gains
Many investors have held stocks for a long time, and the appreciation can result in substantial gains when you sell. So, consider donating some of your appreciated shares and then buying new shares to reset your cost basis at the current, higher price, reducing future capital gains tax exposure.
You can give your portfolio a health check
If a review of your investments’ gains and losses shows that it’s time to rebalance your portfolio to maximize its performance and optimize for risk, donating stock can give your portfolio the health check it needs.
You can donate stocks without headaches
Habitat makes it easy to donate stock. Also you can set up a donor-advised fund which is like a charitable investment that can be used exclusively to support charities you care about.
To be eligible for a charitable deduction for a tax year, donations of stock need to be received by the end of the year. It is best to initiate your transactions as early as possible. If you have questions or would like to make a stock donation, please contact David at 801-263-0136 ext. 3 or
