Skip to content

Tax-Wise Giving: Donating Stock

Are you interested in making a charitable gift that may yield double tax benefits and additional savings? If so, a gift of appreciated stock may be the right option for you.

Here are some great reasons you should give stock donation a try:
If you have owned appreciated securities for at least a year and a day, your contribution can offer the following benefits:

You can give more

There are many benefits to giving a gift of securities as an alternative to a cash contribution.  By contributing appreciated securities through Forest Animal Rescue, you make a powerful contribution to help rescued animals while gaining valuable tax advantages.

Eliminate capital gains tax

By donating your appreciated securities, you avoid the capital gains tax you would owe if you sold the securities yourself. By donating stock that has appreciated for more than a year, you are actually giving 20 percent more than if you sold the stock and then made a cash donation. If you donate the stock directly to Forest Animal Rescue, there’s no capital gains tax to pay. Plus, you are still eligible to deduct the full fair-market value of the asset you donated from your income taxes, up to the overall amount allowed by the IRS.

Enjoy a last-minute tax break

At the end of the calendar year, when tax breaks and timing are critical, securities can be deducted on the date you transfer them.

Claim the market value as a deduction

By claiming the market value (versus the cost basis) of the securities, you can enjoy a charitable contribution tax deduction equal to the average of the highest and lowest quoted sales price on the day you make the gift.

You can donate stocks without headaches

Some people may not be interested in donating stock because they think it will require a lot of paperwork and phone calls, or that their chosen charity may not be able to easily accept a stock donation. That is not the case – we can make it a simple process.

To be eligible for a charitable deduction for a tax year, donations of stock need to be received by the end of the year. Because different assets take different amounts of time to be transferred, you should initiate your transactions as early as possible.