Stock Donation

When you donate stock before selling it, you can deduct the full fair market value of your charitable stock donation and at the same time avoid paying capital gains tax applicable on the appreciation of donated stocks.

For Example

Imagine that last year you bought some Apple shares for $10,000 which have now doubled in value to i.e $20,000. By donating the total amount to FOIH, you can claim a charitable donation deduction of the current market value of the shares — the full $20,000.

Stock donations are exempt from capital gains tax meaning you do not get taxed for the $10,000 appreciation in stock value.

A diversified stock portfolio is a healthy one. Whether you rebalance your holdings through active shifting allocations or through selling of stocks it is always a good practice to diversify the portfolio.

Donating appreciated stock to charity is an effective means of doing so.