Donate Stock Charity

Why Donate Stocks to Stocks with Causes

Benefits of Donating Stock and Securities include:

There are many benefits when considering a donation of stocks, bonds, and other assets to Stocks with Causes. There is of course the advantage of helping others with any donation you make. With a stock donation or any type of securities donation you yourself can benefit right along with the charity! The donor has the advantage of avoiding the $3000 limit that hinders most large cash donations, by instead donating a portion of your investment portfolio. What’s even better, any type of investment can be donated. Remember, if this were a cash donation you are limited by the IRS to 3000 dollars a year. With securities donations the limit drastically increases based on your AGI ( adjusted gross income).

The IRS leaves you with a choice. First option is to hold your investment beyond a year to qualify for the long term capital gains rate of 15% or, If you can’t wait than expect Uncle Sam to consider any gains made, taxed as short term capital gains rate. For example if you are normally in the 25 % tax bracket than your short term capital gains tax would be 25%. That is a huge chunk of your earnings!

There is a third option. If you donate your stock rather than sell you will avoid all capital gains on that position. In many cases stock donation can actually help increase the amount you are able to claim as a deduction. Cash often times carries a higher tax Burdon than stocks.
What if your position did not make a gain, but rather has realized a loss. You can use that loss to offset the capital gains on other assets. The downside is that the IRS only allows you to deduct up to 3000 dollars in most cases when using this method. If you donate your portfolio holdings you are allowed to write off up to 50% of your taxable income per year. 50% is much better than $3000.

Offset Large Capital Gains Tax

What If you’re trying to offset large capital gains for the year by donating cash to charity. You’re out of luck. The IRS holds you to that three thousand dollar limit… Securities donations offer a solution though. The donation of stock, bonds or other securities offers you the donor, the advantage of donating up to 50% of your adjusted gross income per year. For example, let’s hypothetically say your adjusted gross income is $100,000 for 2010. According to the IRS, if you donate securities rather than cash you are allowed to deduct up to $50,000 for that year based on the 100,000 dollar Figure. $50,000 sounds a lot better to most than $3000! 

Dollar for Dollar Tax Deduction Rate

Lets assume your last name is not Trump; you are not trying to offset the sale of your home in Manhattan, but rather you have a few absolute dogs in your portfolio that you are looking to unload. Donate them! Stocks with Causes offers a streamlined process to get rid of those awful falling shares or failing bond certificates and still have them benefit charity. It’s a win-win situation. The charity receives securities that we can turn into proceeds to use for our various programs. You alleviate a lot of red marks in your portfolio and receive a tax deduction at a dollar for dollar rate. This is a great opportunity.

Fantastic Financial Benefits for your clients!

If you are an (IR) investment representative, (IAR) investment and investment advisor representative, CPA, accountant, you get the picture!, A Securities donation can be a great benefit to your clients. Whether they are offsetting gains, getting rid of bad beats in their portfolio, or looking for a way to lower their taxable income for this year, stock donations may be for them.

Let our experienced team show you what others have not; a new and greatly beneficial way to lessen your tax burden at the end of the year. Let’s face it, anything we can do to pay less taxes is immense! Making a Securities donation is worth a closer look

Donate Securities

Stocks with Causes

Donate Stocks to Charity

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