How Donating Stocks Can Save You Time and Money

When trying to decide the best way to give back, many of our donors choose to donate stocks or other securities instead of cash. Either way, your favorite charities receive much-needed funds, so what’s the difference? Donating securities instead of selling them and giving the proceeds to a nonprofit can save you money, allowing you to do more for the nonprofits that mean the most to you.

Donating stocks can reduce your tax bill.

Did you invest in a mutual fund that’s done particularly well? Or have you been hanging on to some Netflix stock since 2009? Congratulations! As of August 2018, Netflix shares have skyrocketed, up 5859% over the last ten years. That’s great news for investors, but selling that stock could mean paying hefty capital gains taxes, as much as 20% of the increase in your shares’ value.

While you may be tempted to sell securities and send cash to charities that matter to you, consider donating those securities instead. When you transfer stock directly to a fund at CCCF, not only can you potentially avoid or reduce your capital gains tax, you’re also eligible for an income tax deduction on the full market value. When we receive tradable securities, we sell them and put the money to work doing good for your community. Gifts of long-term appreciated stock or mutual fund shares are an easy and tax-beneficial way to make a contribution to Central Carolina Community Foundation or an existing fund. Stock Gift Instructions can be found here.

You can donate tradable securities to your donor advised fund.

Dr. David Kulbersh and his wife Jane have enjoyed the benefits of donating appreciated stock to their CCCF donor advised fund. “After retiring from my 30 plus years of practice as an obstetrician/gynecologist, my wife and I finally had the time to give back to the community that had been so good to us and our family,” says Dr. Kulbersh. “We visited Central Carolina Community Foundation, the expert in philanthropy, and learned about the tax benefits of gifts of appreciated stock. By giving appreciated stock to our charitable fund, we are allowed to take the full deduction of the liquidated stock and avoid paying capital gains tax. Using our charitable fund, we are able to direct our gifts to the charities of our choice.”

CCCF is here to make giving back as easy and effective as possible. As you look over your investment portfolio and consider what’s doing well, we encourage you to consider your charitable giving plans at the same time.

Questions? Contact Kevin Patten