Appreciated stock is an excellent charitable gift
Gifting stock is not only an impactful way to help advance our climate solutions work, but it can also provide greater tax benefits than cash donations. Some of which may include:
- Receiving a federal income charitable contribution tax deduction, which is based on the stock’s fair market value on the date of the gift. If the stock was owned for more than one year, this can equate to up to 30% of your adjusted gross income.
- Receiving a carryover deduction for up to five additional years if the fair market value of the gift is more than 30% of your adjusted gross income.
- Avoiding capital gains tax that is due when you sell appreciated stock.
Stock owned for less than a year is considered a short-term asset and usually won’t produce attractive tax benefits. Furthermore, if stock has decreased in value, it may be more beneficial to sell it and then make a charitable cash gift, rather than transferring direct ownership of the stock. This way, you can take a capital loss on federal taxes and still enjoy a charitable deduction up to 50% of your adjusted gross income.
Furthermore, please note that gifts of stock to 501(c)(3) Citizens’ Climate Education are tax-deductible, whereas gifts to 501(c)(4) Citizens’ Climate Lobby (CCL) are not tax-deductible. Gifts to CCL can still provide certain benefits, however, such as avoidance of capital gains taxes.
*As every financial situation is different, we recommend seeking advice from a financial advisor or professional about the implications of your gift.