how to donate highly appreciated stock

Written By Lauren King

Donating highly appreciated stock is a tax-intelligent way to support a cause you care about and make the most of your dollars.  

Making the donation is easy!

HOW THE DONATION PROCESS WORKS

  1. IDENTIFY a stock(s) you own that has appreciated in value

  2. TRANSFER the position from your brokerage account to CSBE’s account

  3. DOCUMENT - get a receipt and maintain for your tax records

BENEFITS OF DONATING STOCK VS GIVING A CASH DONATION

EXAMPLE:

Assumptions: Cost of stock = $5,000 | Current FMV = $50,000 | Capital Gains Tax Rate = 20%

considerations:

  • Discuss the benefits of this strategy with your CPA or accounting professional

  • Stock must be donated directly to a 501(c)(3) qualified U.S. charity

  • Deduction limited to 30% of AGI, with excess carried forward for future years

  • Maintain records of your donation

Lauren King
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