Special Needs Respite: Collaborate
Donate Stocks
How to Donate Stock to Special Needs Respite, Inc.
Tax Benefits of Donating Investments
Gifts of stock and other securities have become a popular way to give to charity and
enable the donor to receive substantial tax savings. When you donate investments, you
can deduct the full value of the asset on your taxes and the charity receives the full
benefit as well. The charity does not have to pay taxes on the gains if it decides to
sell. When you donate appreciated securities (stocks, bonds, mutual funds, ETFs) that
you've owned for more than a year, you can reap significant tax advantages.
Investments That Have Increased in Value
By donating appreciated stock or other securities to Special Needs Respite, you receive the full deduction for a charitable contribution, and you don't have to
pay capital gains tax on the increase in value. For example, if you bought stock ten
years ago for $1,000 and it is now worth $5,000, you can donate the shares and can
claim the entire $5,000 as a tax deduction. You will not owe capital gains tax on the
$4,000 appreciation.
Investments That Have Decreased in Value
Donating shares to charity can be a smart move when you have stocks that have been
gaining, but it's better not to donate losing shares to charity. The capital gains tax
benefit does not apply because there is no capital gain. In this case, it's better to sell
the shares and donate the proceeds from the sale. You can use the loss to offset gains
from the sale of appreciated shares, and receive a charitable tax deduction for the cash
donation of the proceeds. If you donate the stock instead of selling it, you can claim
only the fair market value as a charitable deduction and will not receive the benefit of a
capital loss deduction.
Please instruct your broker to transfer shares electronically using the following information:
Brokerage Firm: Fidelity Investments
DTC Number: 0226
Account Name: Special Needs Respite, Inc.
Account Number: Z40557948
EIN: 82-2500516
Please notify us at info@specialneedsrespite.org prior to initiating the transfer so we can properly acknowledge your gift.