Put Stock in Something That Matters
Did you know that when you donate stock, you avoid the tax on the gain while deducting 100% of the value of the contribution? When you give stock, you may earn 2-3x the tax savings vs. donating cash. It’s a win-win for you and us. And now it’s fast, safe, and easy to do.
Front Porch Cohousing by NDL has partnered with DonateStock.com to enable our supporters to make stock donations in 10 minutes or less. Our DonateStock page https://donatestock.com/front-porch-cohousing enables you to donate stock from your brokerage directly to our account through a secure portal, making the gifting process fast, safe, and easy.
So remember, charitable giving doesn’t always mean cash. By giving stock, your support will have an even greater impact—without denting your pocketbook. Give smart and save more by putting stock in something that matters. Click the Donate Stock button to get started.
Donate stock to charity for bigger tax savings
Don’t leave money on the table
As an investor, you could be making a greater impact on your favorite charity and saving more on taxes by donating stock instead of cash. Be sure to get the most bang for your charitable buck.
Donating to charity feels good. So does the tax deduction. It’s not surprising that nearly 75% of high-income taxpayers donate cash to charity. But fewer than 10% donate marketable securities. This is surprising given the tax advantages of donating long-term appreciated securities (i.e., those held for more than one year) versus cash.
When you donate appreciated securities to a qualified charity, the fair market value is deducted from your taxable income, and neither you nor the charity will be taxed on the capital gain. Therefore, you can make a bigger impact with your charitable donation by gifting your stocks rather than liquidating them and gifting the cash that remains after you’ve paid up to 23.8% in federal capital gains tax.
Give yourself the gift of lower taxes
There are two ways to reduce your tax costs through securities donations:
Gift your star performers. Maximize your savings on capital gains taxes by donating your strongest-performing stocks. They may be your favorite holdings, but this is not goodbye – replenish your portfolio by purchasing the same security (or a similar exposure). Because the stock has appreciated since your original purchase, your new cost basis will be higher, which creates the potential to harvest tax losses to offset gains in future years.
Rebalance for a cause. When your portfolio has drifted from its target allocation, it’s time for rebalancing, which is a great time to think about your favorite charities. As you trim outsized exposures, consider donating your lower cost-basis long-term holdings as this will reduce the tax impact of rebalancing.