Giving appreciated securities, including stocks or bonds, is an easy way for you to make a charitable donation with considerable potential benefits. Not only will it increase your capacity to be philanthropic, but you'll receive tax savings on your donations as well.
What are the benefits of giving securities?
Donating securities that have increase in value is a tax-savvy plan and helps support our community. Gifts of appreciated securities that you have held for longer than 12 months offer a two-fold tax savings:
Charitable Income Tax Deduction
If you itemize your deductions, you may receive a charitable income tax deduction for the full fair market value of the securities on the date of the gift.
No Tax on Increased Value
You do not pay capital gains tax on the increase in the value of the securities. For example, if you were granted the securities that now have a fair market value of $100,000, you do not pay tax on the $100,000 gain.