You can donate appreciated stocks in several ways. The crucial requirement is that you donate them directly, without selling them first.
When you directly donate appreciated stocks, Your Whole Baby will be able to put the full value of your stocks to work and neither you nor Your Whole Baby will pay tax on the capital gains. If you qualify for a tax deduction, that deduction will be at the full value of your investment at the time you make the donation.
Donate stocks directly to Your Whole Baby by contacting us for information on what we will need to process your donation. Then, contact your brokerage firm to find out what their procedures are for making the transfer and ensuring this approach is right for you.
Donor Advised Funds (DAFs)
Another way to donate stocks to Your Whole Baby is through a Donor Advised Fund (DAF). Anyone can set up a Donor Advised Fund account: individuals, families, companies, foundations, and other entities.
After you create your uniquely named Donor Advised Fund account, you may make charitable contributions of stocks or cash to your separate account at any time. You are immediately eligible to benefit from a tax deduction in that tax year. Your contribution remains invested in your DAF account until you recommend that specific grants be made to a qualified charity like Your Whole Baby.
When you make a grant to Your Whole Baby, we will receive a check in the mail from your DAF. Many financial institutions and brokerage firms have an affiliated but independent organization that offers the opportunity to open a DAF. Consult with your financial or tax adviser. to ensure you’re making the best use of your funds.
”If you’re charitably inclined and hold meaningful amounts of appreciated stock… stock donations can reduce your taxes by giving you total deductions that exceed your new increased standard deduction amount.” - Forbes