Donating Stock Is A Good Idea

why donors should donate stocks

Donating stock to charity is a good idea in many scenarios. If a supporter donates a stock that has increased in value, the donor will not have to pay capital gains tax in the future and Africa Relief and Community Development will not either. What’s more, the donation is tax-deductible if the donor itemizes their taxes. This will allow them to claim a tax deduction based on the value of the stock at the time of the transfer if they have owned the stock at least one year and one day. Once the stock donation is complete, the donor will receive automatically a written confirmation of their contribution for their tax records. There are other considerations for donors:
Donate Stocks Owned For At Least One Year
Donors will obtain a much larger tax benefit for stocks donated after the 1-year threshold. This is because stock sales are subject to capital gains taxes with different treatments based on how long.
the investor has held the stock. If it’s been held less than a year, the tax benefits are reduced. For this reason, we encourage donors to donate stocks they’ve had at least one year and avoid donating stock owned for less than one year.
Publicly Traded Stocks
For the benefit of Africa Relief and Community Development, it’s always best to donate a stock that trades on a public exchange because other stocks or assets are more complex security sales. Privately held stocks or restricted shares of public stocks are not ideal for charitable donations.
Successful Stocks
Stocks that have appreciated significantly are great to consider for a charitable contribution because if the donor has stocks that have increased in value, they will have a large capital gain at the time of sale. Thus, these are good stocks to target for a donation as opposed to stocks that have lost value.


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