Donation of Appreciated Securities

If you would like to make a donation to German Shepherd Rescue of Northern California and you own appreciated stocks, a very tax efficient way to make the donation is to transfer the stock to Rescue (rather than selling it and donating the proceeds). Since we are a non-profit, when we sell the security (immediately) no tax is due on the sale and the entire proceeds goes to Rescue. The donor gets a deduction equal to the proceeds we receive from the sale.

For example, suppose you own stock with a current market value of $6,000 and a cost of $1000. If you donate the stock to Rescue, we immediately sell it, receive the $6,000 and pay no tax. You get a tax deduction of $6,000.

Compare this to selling the stock first, paying the taxes on the gain of $1465 (20% capital gains and 9.3% state) leaving $4,535 to donate to Rescue and only $4535 to deduct on this year's tax return.

So donating the security gives you $1465 more deduction and Rescue receives $1465 higher donation.

Brokerage account information coming soon! Please check back later.