A better way to give:
Donate Stock Instead of Cash
Did you know that if you own stock for more than one year that has gone up in value, you can donate the stock to a nonprofit, get a deduction equal to the fair market value of the stock at the time of the transfer, and never pay capital gains tax on the appreciated value of the stock?
As we near the end of 2017, many people are deciding to make significant contributions to their favorite charities. With the stock market at record highs, those with investment portfolios have created a significant amount of wealth and may want to donate some of their wealth to help those who are less fortunate.
Instead of giving cash, people with investments in stocks, bonds and other securities they’ve held for at least one year can donate those that have appreciated in value. This will result in significant income-tax savings. In fact, donating stock saves even more taxes than donating cash, since there is no capital gains tax when appreciated securities are given to a nonprofit.
If the stock has increased in value from the time of purchase, the owner can avoid paying the capital gains tax by donating the security to another party. When the security is being donated to a charitable organization, the total amount will still be eligible for a tax deduction.