Giving Hope to the Future through Education

   Donating Stock to Avivara

"An investment in knowledge always pays the best interest."
                                                                                           - Benjamin Franklin

If you would like more information on how to donate stock to Avivara, please complete the form below.
We will respond within 48 hours (but usually sooner.)

Which is better - donating stock to a charity or donating the proceeds from selling the stock?

It depends on whether you've gained or lost money on the investment.

If the stock has increased in value since you bought it, then you'll be better off donating it to charity instead of selling it. That way, you'll avoid the capital-gains taxes on the profit. Say you bought 100 shares of a stock at $10 and it's now worth $40 per share. If you give the stock to charity, you won't have to pay the capital-gains taxes on the $3,000 in profit. If you held the stock for more than a year and are in the 15% long-term capital gains tax bracket, that move will save you $450 in taxes, which you'd owe if you sold the stock first. And if you've owned the stock for more than a year, you'll still be able to deduct its current market value -- $4,000 -- as a charitable contribution on your taxes if you itemize, like you would whether you gave stock or cash. (If you held the stock for one year or less, then you'd only be able to deduct the original $1,000 purchase price.)

If the stock has decreased in value, though, it's better to cash it in first so you can deduct the loss. If that 100 shares of stock you bought at $10 is now worth $4, for example, you'll be able to write off the $600 loss if you sell the stock before giving the money away. If you held the stock for more than a year and are in the 15% long-term capital-gains bracket, for example, that move can save you $90. And you'll still be able to deduct the value of the gift as a charitable contribution -- $400 in this case.

If you would like to see the tax advantages to making a contribution of appreciated stock versus a direct cash contribution, you may use the Stock Donation Calculator found on the Charles Shwab website.

(Note: When making the comparison using the Charles Shwab Stock Donation Calculator, simply enter the amount you would want to contribute in cash in the first section and then the same amount that you would want to donate as stock in the second section. It will then calculate the tax savings you would realize by making your contribution in stock.)

As per the Avivara Gift Acceptance Policy, Avivara volunteers and staff are to inform, guide, or otherwise assist the donor in fulfilling his/her philanthropic wishes, but never to pressure or unduly influence such a decision. All donors are advised to consult their own attorneys and/or tax adviser(s) regarding the various aspects and tax ramifications of their proposed gifts.

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