Stock Gifts

Donating Stocks

There are several great reasons to donate stock: It’s one of the most tax-savvy ways to give. If you donate stock, your gift goes further than if you sold that stock and donated the proceeds. This is because donating appreciated stock lets you save on your taxes in two ways: you avoid capital gains tax on the appreciation, and you also can take a tax deduction on the value of the shares you donated.

How to donate stock: In addition to using a donor-advised fund, there are other methods of donating stocks to charity. If the stock exists as a physical certificate, you must endorse it by signing it in the presence of a guarantor, usually a bank or broker. There can also be a form on the back of the stock that requires filling out. Once these things are completed, the stock becomes non-negotiable and thus transferable. If there isn’t a physical stock certificate, which is usually the case, then the stock exists in a digital version stored in a brokerage account. Most brokerage accounts insist on written and signed authorization with specific instructions on how the transfer should be done.