How Stock Donations Work:
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Transferring Shares: You can instruct your brokerage firm to transfer the shares directly to the TEFNA’s brokerage account. This is often done using an electronic transfer system.
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Valuing the Donation: The value of the stock donation is typically determined based on the fair market value of the shares at the close of the market on the date of the transfer.
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Receipt of Donation: TEFNA provides the donor with a receipt noting the number of shares and the valuation, which is used for tax reporting purposes.
Why Donate (Appreciated) Stock Over Cash:
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Tax Benefits: If the stock has appreciated in value since you acquired it, you can avoid paying capital gains tax on the profit.
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Potential Deduction: You can potentially take a tax deduction for the full fair market value of the stock at the time of the donation, up to 30% of your adjusted gross income.