Shares of appreciated publicly traded stock are an effective way to support ASH and avoid taxation on the gain!
There are many benefits to gifts of stock including:
By donating stock rather than selling it, donors 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).
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 you give it away.
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 donors’ cost basis at the current, higher price and thus decreases their future capital gains difference as the stock grows in value.
Our groundbreaking mission of reaching ZERO deaths from tobacco is now more accessible to more supporters like you. With one person dying every 4.5 seconds from a tobacco-related disease, we must act quickly. You can donate your gift of stock to ASH today through this form! Thank you for your generosity!
There are still benefits to giving stock in a down market
Donating stock during the down market is still an impactful way to give — and can still benefit you! Here’s why:
- Most donors have appreciated assets. No matter the state of the market, most donors did not buy stock at the peak of its value, and some of their assets have appreciated over time. The benefit of donating that stock and avoiding capital gains tax still holds, and can be an appealing gift option in a moment of financial upheaval.
- Donors can give stock without changing their portfolio. After donating stock, donors are eligible to buy the same stock again within the day. This allows donors to make a powerful, tax-savvy gift while maintaining their stock portfolio, no matter the market.
- When giving stock, donors are exempt from the “wash sale” rule. This is important when giving stock at a loss. If they were to sell that stock, rather than donate it, the wash sale rule requires a 30 day period before they can repurchase that stock. This rule exists to keep people from selling at a loss, deducting the capital loss on the sale against the capital gain, and then immediately repurchasing the stock to maintain their holding. No such rule applies to stock donations.
Disclaimer: This website is not to be interpreted as furnishing any personal, legal, or tax advice. All content on this page is solely for information purposes only. Always consult your own financial and/or tax advisor for advise.