A stock portfolio is often among the most valuable assets you own but, as stock prices increase, so do the taxes you owe on the long-term capital gain. With careful planning, you can reduce federal capital gains tax while supporting the causes that you care about. Donating appreciated stock can offer even more tax benefits than writing a cheque.
Normally, when you sell listed securities, tax must be paid on 50% of any capital gain (the increase in value since you acquired the securities). However, when you donate these same securities to a charitable organization like the TFF, you do not pay the capital gains tax. To make a gift of stock, please download and complete this form with your broker.
- In order to realize the tax benefits, you must transfer the securities to the charity, not sell them first.
- Your charitable receipt will be valued based on the closing price on the day when the shares are legally transferred to an account at our brokerage firm.
- You can carry forward the unused tax credit for the donation amount, for up to five years.
- When your tax bill arrives, there will be no capital gains tax to pay!
*Please note, it typically takes 3–5 business days to sell and settle a trade from the date that we receive the securities or mutual fund from your broker or financial institution. Need help? Contact Mark Mahl our Manager, Philanthropic Relations.