A better way to give: Donate stock instead of cash
Market Watch
Donating your stocks to Yad Yehuda of Greater Washington can greatly benefit both the donor and Yad Yehuda.
If you would like to donate stock to Yad Yehuda of Greater Washington, please fill out the contact form below and we will advise you on what information is needed in order to proceed with the donation.
If you would like to donate stock to Yad Yehuda of Greater Washington, please fill out the contact form below and we will advise you on what information is needed in order to proceed with the donation.
How Does it Work?
Moshe owns 1,000 shares of stock, which is traded on the New York Stock Exchange. He paid $1,000 for the shares back in 2005 and they are worth $10,000 today. He gives the stock to his favorite nonprofit, Yad Yehuda of Greater Washington, and deducts its $10,000 fair market value as a charitable contribution.
The Benefits: Moshe need not pay the 15% capital gains tax on the $9,000 gain in the value of his stock. Yad Yehuda sells the stock and pays no taxes on the $10,000 it receives. Had Moshe sold the stock he would have had to pay a $1,350 long-term capital gains tax on his $9,000 profit (15% x $9,000 = $1,350). This would have left him only $8,650 from the stock sale to donate to a nonprofit.
The Benefits: Moshe need not pay the 15% capital gains tax on the $9,000 gain in the value of his stock. Yad Yehuda sells the stock and pays no taxes on the $10,000 it receives. Had Moshe sold the stock he would have had to pay a $1,350 long-term capital gains tax on his $9,000 profit (15% x $9,000 = $1,350). This would have left him only $8,650 from the stock sale to donate to a nonprofit.
For more information on donating stocks to charity, please check out the various articles below. (All links are to external sites)
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