Thank you for making a significant impact by gifting stock and donating long-term appreciated securities, including stock, bonds, and mutual funds, directly to Cross to Light.
Top 10 Benefits of Donating Stock to a Non-Profit
When it comes to charitable giving, most people think of writing a check or making a cash donation. But one of the smartest, most impactful ways to give is through donating appreciated stock to a non-profit organization. This method of giving can provide significant financial advantages for donors while maximizing the resources available to the charities they care about.
Below are the top 10 benefits of donating stock to a non-profit, and why more donors are turning to this tax-efficient strategy.
1. Maximize Your Tax Savings
When you donate appreciated securities that you’ve held for more than one year, you can generally deduct the full fair market value of the stock on your income taxes. This can substantially reduce your taxable income.
2. Avoid Capital Gains Tax
Selling stock triggers capital gains taxes—sometimes as high as 20% (plus state taxes). By donating directly, you bypass the sale and avoid paying these taxes altogether, while still gaining the deduction.
3. Increase the Impact of Your Gift
Since neither you nor the non-profit pays capital gains taxes on donated securities, the full value of your stock goes to the organization. That means more dollars go directly to the mission you care about.
4. Support Causes Without Reducing Cash Flow
Donating stock allows you to support your favorite non-profit without using cash. This preserves your liquidity while still giving generously.
5. Rebalance Your Portfolio Strategically
If your portfolio has become overweight in certain stocks, donating shares helps you rebalance your investments while turning a potential tax liability into a charitable gift.
6. Fulfill Pledges or Annual Giving Goals Easily
Stock donations can be used to satisfy charitable pledges or annual giving commitments. This is especially helpful for larger gifts where writing a check may not be ideal.
7. Reduce Estate Taxes
By donating stock during your lifetime, you may also lower the taxable value of your estate, reducing potential estate taxes and leaving more for your heirs and chosen causes.
8. Leverage Growth You Already Earned
When you’ve owned stock that has significantly appreciated, donating it allows you to leverage that growth in the most tax-efficient way possible—without paying to unlock the gains.
9. Create a Legacy of Generosity
Stock donations can be directed toward donor-advised funds, endowments, or major campaigns, allowing you to leave a lasting impact and set an example of charitable giving for future generations.
10. Simple, Flexible, and Widely Accepted
Most non-profits, donor-advised funds, and foundations have systems in place to receive stock donations. The process is straightforward and often easier than selling and transferring cash.
Why Donating Stock to a Non-Profit is Smart Giving
Donating stock is one of the most effective ways to give. Whether you want to reduce your tax burden, rebalance your portfolio, or amplify your giving power, stock donations create a win-win for you and the organizations you support.
Ready to donate stock to Cross to Light? Click the link above – it’s easy.