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Should I Give My Stock to Charity?

Article Type: Ask a Planner

Q. Should I give my stock to charity?

A. If you have stock that you’ve owned for at least a year and it has increased in value, this is much more cost effective than giving cash. You’ll receive a tax deduction for the fair market value and avoid paying capital gains. If, however, the current value of your stock is less than what you paid for it, you’re better off selling the stock, recognizing the loss on your income taxes and making a cash gift to charity with the proceeds.

Q. What are the advantages of giving stock through the Stewards Fund?

A. Through the Stewards Fund (Barnabas Foundation’s donor-advised fund), you can give stock or other non-cash assets into a single online giving account, and then recommend grants to one or more of your favorite ministries at a later date. This is especially beneficial in the year-end rush.

Q. What do I need to know when making a year-end stock gift through Barnabas Foundation?

A. If you want to receive a deduction for this year’s taxes, shares must be in Barnabas Foundation’s brokerage account no later than December 31. Make sure to notify us of your gift, so we can ensure your shares are appropriately credited to your Stewards Fund account. The best way to do this is by using the new “Gifting Securities to Your Stewards Fund form.

For answers to these and other frequently asked questions, contact us.