What are the benefits of giving stock directly to charity?
Giving stocks or securities is as easy as 1,2,3 (click here for the form).
Gifts of stocks and securities to charities are an attractive option because:
Winning stocks: You do not pay capital gains tax on appreciated stocks
or securities if they are donated directly to a
registered charity. Any excess tax credit can be carried forward five years.
Losing stocks: Consider triggering a capital loss and donating the cash proceeds
to Institute for Advanced Judaic Studies. Not only will you receive a donation
credit, but the capital loss on the securities can be used to offset
capital gains in the current year or be carried back three years or carried forward
indefinitely to offset any capital gains and thus reduce your income taxes.
You will receive a tax receipt for the full, fair market value of the shares,
but you will not be taxe on any gain.
You can claim charitable donations up to 75% of your net income.
Your gift comes from your assets, not your income.
Donations can also be used to reduce tax liability when unexpected
taxable events occur.
Using charitable donations as a tax planning vehicle benefits
both you and the charity.