Smart Giving - savvy tactics for the generous minded.

Donate Appreciated Stock: A Smart Way to Give

Donating stock or mutual fund holdings to NSRWA (or any non-profit) allows you to be tax smart and support our mission. Here’s how donating appreciated assets can be advantageous for you, and for your favorite charity:

Compelling Tax Advantages

Avoid Capital Gains Tax

Donating stock that has increased in value (held for over a year) means you can avoid paying capital gains tax on the growth. This can save you up to 32.8% in combined state and federal taxes compared to selling the stock and donating cash proceeds.

Get a Charitable Deduction for the Full Value

You can deduct the full value of the stock on the day you make the donation, up to 30% of your adjusted gross income (AGI), significantly reducing your income tax liability.

The Bottom Line

Donating appreciated assets gives you a double tax benefit: an income tax deduction and the avoidance of capital gains tax on the appreciation. This allows you to donate more to charity than if you sold the assets, paid the taxes, and then donated the remaining cash.

Example

Consider this scenario: You bought shares worth $5,000 several years ago, and they’re now valued at $20,000. If you sell the stock, you could owe up to $4,920 in capital gains tax (under current combined Federal and Massachusetts rates).

However, by donating the shares directly to a non-profit, you avoid that tax and can claim a $20,000 charitable deduction—all while supporting sustainability and education initiatives at their full value!

How to Donate Stock

• Let Us Know

  • Inform us of how much you wish to donate, which stock or mutual fund you’ll donate, and your brokerage contact information. We’ll calculate the number of shares required to reach your target gift amount.

• Receive a Letter of Instruction

  • We will provide a letter of instruction to sign for your brokerage firm detailing our brokerage information and the number of shares for your target gift.

• Direct Donation of Shares

  • This process allows you to make a direct donation of shares, avoiding capital gains taxes. The value of your deduction is based on the stock’s average market price on the date of transfer.

• Acknowledgment Letter

  • NSRWA will send you an acknowledgment letter for your donation. This letter, along with your brokerage records showing the transfer date and fair market value, will validate your deduction on your tax return. It's a win-win!

    
    

Tip to Maximize Your Impact

This strategy works best if you have stocks that have significantly increased in value over time. Instead of paying up to a third of your gains in taxes, donate the full amount and receive a deduction for it. Since neither you nor NSRWA pays additional capital gains tax, the entire value of the asset supports our mission—whether it’s climate research, environmental conservation, or educational outreach, and you get a tax deduction.