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4 Benefits of Donating Stocks

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Fred Cruz
SeriousFun Contributor 

 

Donating stocks is an easy, tax-smart way to give that benefits both you and our campers and their families. If you’re feeling inspired to help keep camp free and accessible to children with serious illnesses, why not do so while receiving key financial advantages?

 

Here are four benefits to donating stock this year-end.

 

Bigger Tax Savings

When you sell stock shares at a profit, you are required to pay a capital gains tax on that profit (the number will vary depending on your income bracket). However, if you donate it directly to your charity, neither you nor the charity will have to pay capital gains taxes on it.

Bigger Donation, Bigger Impact

If you’ve held the stock for at least twelve months at the time of sale, the hefty amount you would have paid to the IRS (25% to 35% of the stock value), will go directly to your charity.

Lower Taxable Income

Tax deductions aren’t exclusive to cash donations. Stock donations are tax deductible too. This means if you itemize your donations when filing your federal tax returns, you can deduct your charitable contribution and lower your taxable income.

Easy Peasy Lemon Squeezy

Donating stocks does not have to be the hassle or headache many people think that it is. You can simply do so by obtaining and completing the relevant stock transfer information from your charity (SeriousFun’s can be accessed here) and forwarding it to the brokerage firm managing your stocks. There are also third-party services that can initiate the stock on your behalf but please know a fee is usually involved.

 

SeriousFun Children’s Network does not provide financial, tax, legal, or accounting advice. This document has been prepared for informational purposes only and is not intended to provide financial, tax, legal, or accounting advice. You should consult your own financial, tax, legal, and accounting advisors before engaging in any transaction.

 

 

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