DONATE STOCKS TO EL CAMPANIL THEATRE
How to Donate Stock to Charity
You can do good and get a tax break for yourself. Here's how:
Every year, millions of Americans donate to worthy charities. Not only can the money do good for the community, but donors are often entitled to valuable tax breaks in exchange for their charitable gifts.
Many people simply write checks to their favorite causes. But if you own shares of companies that have risen in value over the years, then donating stock to charity can be an even smarter way to give.
Why Donating Stock to Charity is Smart
Everyone wants to own investments that grow, but in many cases, you have to share the profits from your stock positions with the IRS. When you sell a stock in a regular taxable brokerage account, you'll owe taxes on the capital gains, or the difference in what you received in sales proceeds compared to what you paid for the stock when you first invested in it.
The taxes on those gains depend on how long you've held the stock. If you've owned it for a year or less, then you'll pay your ordinary income tax rate -- currently, as high as 37% -- on the gains. If you owned it longer than a year, lower long-term capital gains rates apply, but they can still take away up to 20% of your profits. In addition to federal income taxes, some states (including California) also tax capital gains.
If you give stock that you've owned longer than a year to charity, though, you can deduct the full market value of the stock as an itemized charitable deduction. That not only avoids the capital gains liability you'd owe on the stock if you sold it, but also maximizes the tax deduction you're allowed to take.
Donating to charity gives back to your community. If you're fortunate enough to have stock that's gone up in value, then donating that stock to charity can be a win-win scenario for your favorite charities and you at tax time.
How to Make Your Stock Gift
Making a stock gift is a little more complicated than taking out your checkbook. With help from your financial institution, however, it doesn't involve a huge amount of effort.
The first step is to contact our Executive Director, Joel Roster: (925) 757-9500. Joel@elcampaniltheatre.com
He will inform you that El Campanil Theatre Preservation Foundation maintains a brokerage account at Integrity Wealth Partners that serves to accept donated shares of stock. He will provide you with our brokerage account information to complete the rest of the process."
Next, talk to your financial institution to find out what they need to get the shares transferred. Usually, the instructions we give you will be enough for your brokerage company to get its side of the process done. You'll also likely have to complete some paperwork in order to authorize the stock donation.
If you're doing this near the end of the year, be aware that this is a very busy time for brokerage companies to handle stock gifts. Many institutions have deadlines well before Dec. 31 to request charitable stock gifts, so don't wait until the last minute.
Source: The Motley Fool Stock Advisors
EL CAMPANIL THEATRE PRESERVATION FOUNDATION cannot render tax or legal advice. Please consult with your professional financial advisor before making a charitable gift.
This page was last updated on: February 26, 2021
You can do good and get a tax break for yourself. Here's how:
Every year, millions of Americans donate to worthy charities. Not only can the money do good for the community, but donors are often entitled to valuable tax breaks in exchange for their charitable gifts.
Many people simply write checks to their favorite causes. But if you own shares of companies that have risen in value over the years, then donating stock to charity can be an even smarter way to give.
Why Donating Stock to Charity is Smart
Everyone wants to own investments that grow, but in many cases, you have to share the profits from your stock positions with the IRS. When you sell a stock in a regular taxable brokerage account, you'll owe taxes on the capital gains, or the difference in what you received in sales proceeds compared to what you paid for the stock when you first invested in it.
The taxes on those gains depend on how long you've held the stock. If you've owned it for a year or less, then you'll pay your ordinary income tax rate -- currently, as high as 37% -- on the gains. If you owned it longer than a year, lower long-term capital gains rates apply, but they can still take away up to 20% of your profits. In addition to federal income taxes, some states (including California) also tax capital gains.
If you give stock that you've owned longer than a year to charity, though, you can deduct the full market value of the stock as an itemized charitable deduction. That not only avoids the capital gains liability you'd owe on the stock if you sold it, but also maximizes the tax deduction you're allowed to take.
Donating to charity gives back to your community. If you're fortunate enough to have stock that's gone up in value, then donating that stock to charity can be a win-win scenario for your favorite charities and you at tax time.
How to Make Your Stock Gift
Making a stock gift is a little more complicated than taking out your checkbook. With help from your financial institution, however, it doesn't involve a huge amount of effort.
The first step is to contact our Executive Director, Joel Roster: (925) 757-9500. Joel@elcampaniltheatre.com
He will inform you that El Campanil Theatre Preservation Foundation maintains a brokerage account at Integrity Wealth Partners that serves to accept donated shares of stock. He will provide you with our brokerage account information to complete the rest of the process."
Next, talk to your financial institution to find out what they need to get the shares transferred. Usually, the instructions we give you will be enough for your brokerage company to get its side of the process done. You'll also likely have to complete some paperwork in order to authorize the stock donation.
If you're doing this near the end of the year, be aware that this is a very busy time for brokerage companies to handle stock gifts. Many institutions have deadlines well before Dec. 31 to request charitable stock gifts, so don't wait until the last minute.
Source: The Motley Fool Stock Advisors
EL CAMPANIL THEATRE PRESERVATION FOUNDATION cannot render tax or legal advice. Please consult with your professional financial advisor before making a charitable gift.
This page was last updated on: February 26, 2021
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