How to Donate Stock
With the stock market regularly breaking records at the closing bell, many of your investments are likely worth more today than what you originally paid for them.
Time to sell? If you do, you might have to pay capital gains taxes. There’s a better option that provides you with valuable tax incentives as well as the satisfaction of supporting a cause close to your heart: Give your stock to Stanford University School of Medicine or Stanford Health Care.
When you give appreciated securities that you’ve owned for more than one year, you will receive two tax benefits:
- You are entitled to a federal charitable income tax deduction based on the current fair market value of the securities, regardless of their lower original cost.
- You will be exempt from paying capital gains taxes on any increase in value—taxes you would pay if you sold the stock.
Reap the Rewards
To realize full tax benefits from your gift, keep the following IRS guidelines in mind:
- Donate long-term appreciated property. For short-term assets (owned one year or less), only the amount you originally paid is deductible.
- Watch the ceiling. The gift deduction for long-term capital gain property is limited to 30 percent of your adjusted gross income in the year of your gift, but you can carry forward any amount of the deduction that you cannot use over the next five years.
How to Make a Gift of Stock
If your securities are held in your brokerage account:
- Instruct your broker to electronically transfer your intended shares by providing them with the Securities Transfer Request Form [PDF]; and
- Ask your broker to notify us once the transfer has been made.
If you would like to make a gift of mutual fund shares, please contact the Gift Securities Team directly at 650.721.1917. Mutual fund gifts require special handling and set up and can take 7-10 business days to complete.
We’re Here to Help
To discuss using your stock holdings to support our mission, feel free to contact Carol Kersten or Blake Grossman at 650.723.6560 or email@example.com. Together with your advisor, we can help you fulfill your charitable goals and protect your assets from unnecessary taxes.
The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes include federal taxes only. State income/estate taxes or state law may impact your results. Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.