Gifts of Stock Donations
Donations of stock can be a benefit to you as well as to The Salvation Army. An outright gift of long-term securities (owned more than one year) to The Salvation Army is free of capital gains tax, no matter how much their value may have risen. Therefore, it is better to donate appreciated long-term stock outright than to sell it yourself and then donate the money to charity, in which case you would be responsible for the capital gains tax. A gift of stock also allows you to remove the appreciated asset from your taxable estate.
When you make a gift of long-term appreciated stock, you can deduct the full fair market value of the gift from your taxable income when itemizing deductions in the year you make the gift as long as it does not exceed 30 percent of your adjusted gross income. In addition, you may “carryover” and deduct any remaining amount during the next five years, as long as it does not exceed 30 percent of your adjusted gross income in the year of deduction.
You can take pleasure in knowing that your generous gift provides immediate support for the programs and work of The Salvation Army.