Donating stock is easy to do, and may result in tax savings. A gift of stock is valued for tax purposes on the date of transfer. The fair market value of gifts of long-term, capital gain securities is deductible up to 30% of a donor’s adjusted gross income. Any amount in excess may be carried forward for a period of five years. Giving securities that have increased in value is a great way to benefit Catholic Charities and bypass the capital gains tax that would be due on a sale.
For example: Suppose that stock purchased years ago for $1,000 is now worth $10,000. Donating those shares would result in a charitable deduction of $10,000, and you would not owe capital gains tax on the $9,000 of appreciation.
To preserve the tax advantages of donating stock, you must transfer the shares directly to us. Do not sell the stock.