You’re invited to the 2024 Hepatitis B Foundation Gala on April 5, 2024 in Warrington, PA. Details here.

Donating stock: Benefits for donors, even in a turbulent market

For donors with appreciated stock, there are three key benefits to making a direct stock donation: 

1. You save on taxes. 

By donating stock rather than selling it, you avoid paying a capital gains tax. A capital gains tax is a tax on the profit made from the sale of a non-inventory asset like stock. Depending on the filer’s marital status and income, the federal minimum for a capital gains tax is as high as 20% on long-term holdings (for example, stock held for more than one year).

2. You can take charitable deductions. 

If you donate long-term holdings (stocks held more than one year) and itemize deductions, you can take a charitable deduction for the stock’s fair market value on the day they give it away.

3. If your stock is currently at a higher value, you can decrease future capital gains by donating stock and buying new shares. 

This resets the cost basis at the current, higher price and thus decreases your future capital gains difference as the stock grows in value.

More resources on donating stock