Non-profits do not pay taxes on sale of securities.
Sell Stock and Donate Cash
When you sell appreciated stock, up to 37.1% is taxed.
By selling shares for $10,000 originally bought for $3,000, between state and federal taxes, up to 37.1%, or $2,597 is taken. That leaves only a $7,403 donation and deduction.
Donate stock directly
When you donate appreciated stock, non-profits keep 100%, and you receive the full market value deduction.
By donating shares worth $10,000 that was bought for $3,000 of stock, you get the full $10,000 deduction and the charity keeps 100% of the stock value.
If you want to remain invested in a stock, donate existing lots and repurchase with cash. This removes future taxes.
Sarah bought Apple on Jan of 2017 for $3,000. In Feb of 2018, she donates the shares (market value of $6,500) and receives the deduction for $6,500 on her 2018 tax returns. On the same day, Sarah repurchases the same number of shares using $6,500 cash.
When Sarah sells the shares after the Feb 2018 repurchase:
At a gain, she’ll only be taxed at the price excess of $6,500.
At a loss, she’ll get all the deduction benefits from the cost basis of $6,500.
Use the tax savings to give even more.
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Gifting stock* couldn’t be easier.
automates the process for donors.
*we also accept bonds, ETFs, AND mutuals funds
How it works
You fill out our questionnaire.
We transfer your securities.
email you the tax receipt.
optimize the sale price.
send the cash.
No need for you to get recipient account numbers, bother finance staff at the charity, or waste time figuring out how to get documents to your broker. Cocatalyst makes donating through stock easy.