Donate Stocks
Stock donations are an amazing opportunity for donors to make a larger contribution to their organization of choice while avoiding the capital gains tax. But oftentimes this method of giving is complicated and donors are unsure of where to begin.
There are major advantages in donating appreciated securities instead of a cash gift. When you donate an appreciated security you will not pay capital gains tax on the gain, and generally receive a tax deduction for the full value of the security on the day it is donated. Giving appreciated securities can save you hundreds or even thousands of dollars versus a cash gift- allowing you to better maximize your contributions to Khair.
A gift of stock may provide more benefits than a cash gift. A gift of stock may be right for you if:
1. You are holding stocks that have risen in value. If your stocks are highly appreciated, you may find yourself with a hefty tax bill when it comes time to sell. By using these securities as a gift, you can avoid the capital gains tax on any paper profit.
2. You would like to maximize your deduction while not affecting your liquidity. If you decide to make a gift of stock, you not only retain your cash assets, but you also receive a charitable tax deduction for the full fair market value of the stock that you’ve owned for more than one year.
We’ve made it incredibly easy for you to give with our new form that allows you or your advisor to make a gift in less than 15 minutes! It is necessary for you to contact your broker to initiate the transfer. First, complete the information below to generate a customized letter to send to your broker to initiate the stock transfer.
After completing the information below, you will be emailed a customized letter that you can forward via email to your broker to initiate the stock transfer on your behalf. This will also alert Khair of your incoming gift so that a tax receipt can be sent to you.
Thank you for investing in your local community center and your akhirah. May Allah accept the donation and allow us to continue serving the community!
*Any decision you make regarding tax implications of your investments and donations should be made in consultation with your personal tax advisor.