Donating via Stock. How to evaluate which stock is best to give.

Put your best donation forward.

 

You're feeling generous and want to help your local community-based nonprofit launch a new program. You're looking at your stock portfolio, but portfolio paralysis sets in... which stock should you donate to maximize impact and minimize taxes??

 

We have a few key qualifiers to help you decide the best stock to donate.

 

1. Give your gains

It's always a good idea to donate stock that you've held for at least a year AND has appreciated the most. Donating long-term appreciated stock will help maximize your tax deduction since you will be able to deduct the full fair market value and avoid up to 20% inlong-term capital gains tax.

 

2. Take an itemized deduction

While taking a standard deduction may seem easier, it won't allow you to recognize the full value of your donation in your tax deduction.

 

3. Hold your employee stock options for at least 1 year

If you want to donate employee stock options, it's best to hold the exercised shares for a year before donating them in order to avoid limiting your deduction value to the exercise price.

Overflow helps you choose your most appreciated stocks by organizing them in descending order from most appreciated to least appreciated.

 

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