Stock Donations

Stock is where you track donations of securities like individual shares of stock, mutual funds, bonds, or other investments. Donating stock instead of cash can be very tax-efficient!

What You’ll See

When you click View next to Stock on the Dashboard, you will see:

A search box – Find donations by charity name
Column headers – Sort by Charity, Stock Symbol, Donation Date, Amount, or Estimated Savings
List of donations – Each row shows one stock donation
Edit/Delete buttons – Modify or remove donations
Special buttons – Some stocks have “Form 8283 M” buttons for multi-item reporting

Understanding the Columns

Charity

The name of the organization that received your stock donation.

Examples:

University or college
Medical research foundation
Community foundation
Arts organization
Environmental nonprofit

Stock Symbol

The ticker symbol for what you donated (for individual stocks).

Examples:

AAPL (Apple)
MSFT (Microsoft)
VTSAX (Vanguard Total Stock Market)
For mutual funds or bonds, might show the fund name instead

Donation Date

The date the stock was transferred to the charity.

⚠️ IMPORTANT: This is NOT the date you bought the stock. It’s the date the charity received it. This is the date that matters for tax purposes.

Amount

The fair market value of the stock on the donation date.

Example: If you donated 10 shares of a stock worth $50/share on the donation date, the amount is $500.

Estimated Savings

Based on your tax bracket, this shows approximately how much you could save on taxes from this donation.

⚠️ IMPORTANT: This is an estimate only. Your actual tax savings depend on your final tax situation and whether you itemize deductions.

Holding Period (if visible)

Whether you held the stock:

Short term – Less than one year (deduction may be limited)
Long term – More than one year (better tax benefit)

Why Donate Stock Instead of Cash?

Donating stock instead of selling it and donating cash can save you significantly. Here’s why:

You Avoid Capital Gains Tax

If you sell the stock yourself:

You owe capital gains tax on the profit
That reduces how much you can donate
You end up with less money to give

If you donate directly:

NO capital gains tax
The full amount goes to the charity
You get a full charitable deduction

Real-World Example

Let’s say you own stock worth $5,000 today that you originally paid $1,000 for:

Scenario A: Sell It Yourself

Sell stock for $5,000
Owe capital gains tax: ~$750 (at 15% long-term capital gains rate)
Money left to donate: $4,250
Tax deduction you get: $4,250

Scenario B: Donate It Directly

Donate stock worth $5,000
Capital gains tax: $0
Charity receives: $5,000
Tax deduction you get: $5,000

In this example, donating stock directly saves $750 in taxes AND gives the charity an extra $750!

What Can You Donate?

You CAN Donate

✓ Individual stocks (shares of publicly traded companies)
✓ Mutual fund shares
✓ Exchange-traded funds (ETFs)
✓ Bonds
✓ Treasury securities (T-bills, T-notes, T-bonds)
✓ Some types of cryptocurrency (limited)

You CANNOT Donate

✗ Retirement accounts (401k, IRA, Roth IRA)
✗ Stock options
✗ Restricted stock units (RSUs) that haven’t vested
✗ Penny stocks (usually)
✗ Thinly traded stocks
✗ Company stock subject to restrictions
✗ Stocks in an IRA account (technically you can, but it defeats the tax advantage)

⚠️ IMPORTANT: Only publicly traded securities (stocks that trade on exchanges) qualify for the best tax treatment. Check with your tax advisor for other types of securities.

How to Add a Stock Donation

From the Dashboard

Click Add a donation button
Select Stock from the dropdown menu
Fill in the form (see details below)

Directly from Stock Category

On the Dashboard, find Stock
Click Add
The stock donation form opens

The Stock Donation Form – What to Fill In

Donation Information Section

Charity name (required)

Click the dropdown or start typing
If your charity isn’t listed, click “Add a charity” to create it

Stock Information Section

Stock symbol (required)

The ticker symbol for the stock
Examples: AAPL, MSFT, VTSAX, BRK.B
For mutual funds, use the fund ticker

TIP: Not sure of the symbol? Search online “stock symbol for [company name]”

Full name of stock (required)

The complete name of the company or fund
Examples:
“Apple Inc.”
“Microsoft Corporation”
“Vanguard Total Stock Market Index Fund”

Date stock was acquired (required)

When you originally bought the stock
Click the calendar icon to pick the date
Format: MM/DD/YYYY

WHY THIS MATTERS: The IRS wants to know if you held it long-term (more than 1 year) or short-term. Long-term donations get better tax treatment.

Original cost of stock (required)

What you paid for the stock when you bought it
Just the number (e.g., “2500” for $2,500)

TIP: Check your original purchase confirmation or brokerage statement.

Date of donation (required)

When you donated the stock to the charity
Click the calendar icon
Format: MM/DD/YYYY

⚠️ IMPORTANT: This should be the date the charity received the stock, not the date you initiated the transfer.

Value on date of donation (required)

The fair market value of the stock on the donation date
What it was worth when transferred, not what you paid

HOW TO FIND THIS:

Look up the stock price on the donation date
Use websites like Yahoo Finance, Google Finance, or your brokerage
Multiply: Number of shares × Stock price on that date = Value on donation date

Example:

You donated 10 shares of AAPL
On the donation date, AAPL was $150/share
Value on donation date: 10 × $150 = $1,500

Tax Impact Section

The form will show:

Holding Period

Automatically calculated from acquisition date and donation date
Shows “Long term” or “Short term”
Long-term gets better tax treatment

Gain on the stock

The form calculates this automatically
Gain = Donation value minus original cost
Example: $1,500 (donation) – $500 (original cost) = $1,000 gain
This is the gain you AVOID when you donate instead of sell

Tax Deduction: $[amount]

Shows the full fair market value on donation date
This is what you can deduct on your taxes

Important Details About Stock Donations

Fair Market Value (FMV)

This is the key to everything. You deduct the FMV on the donation date, NOT what you paid for it.

How to Find FMV:

Check your brokerage account on the donation date
Look up the closing price from that date on financial websites
Call your broker

Why the Donation Date Matters:

Stock prices change daily
A $100 stock on Monday might be $105 on Friday
The IRS cares about the value on the exact date transferred
Use closing price from that date

Holding Period – Long-Term vs. Short-Term

Long-Term Holding (MORE than 1 year)

You held the stock for more than 12 months
DEDUCTION: Full fair market value
BEST TAX BENEFIT

Short-Term Holding (1 year or less)

You held the stock for 12 months or less
DEDUCTION: Often limited to your basis (cost)
LESS TAX BENEFIT

TIP: Whenever possible, wait until a stock has been held for more than 1 year before donating. The tax benefit is much better.

Example:

Bought stock on January 15, 2024 for $1,000
It’s now worth $3,000
If you donate on January 14, 2025: SHORT-TERM (only ~$1,000 deduction)
If you donate on January 16, 2025: LONG-TERM ($3,000 deduction!)
Waiting one more day saves you ~$600 in tax benefit!

Transferring the Stock to Charity

You don’t just email the stock to the charity! You need to transfer it properly.

Steps to Transfer:

Contact the charity – Ask for their brokerage transfer instructions

They should provide account information
They need to know the stock symbol and share count
They may need your broker’s name and account number

Contact your brokerage – Tell them to transfer the shares

Most brokerages can do this electronically
It typically takes 3-5 business days
There may be a small transfer fee ($0-50)
Ask for confirmation when complete

Get confirmation – Once transferred

Your brokerage confirms the transfer
The charity confirms receipt
Keep both confirmations for your records

⚠️ IMPORTANT: Don’t just sell the stock and send cash. That’s not a stock donation—it’s a cash donation and you lose the advantage of avoiding capital gains!

Documentation Requirements

The IRS requires documentation for stock donations:

For donations over $500:

You need Form 8283, Section B (Qualified Appraisal)
A qualified appraiser must value the stock
This costs money, but for liquid securities (public stocks), the value is usually clear

For donations under $500:

You need a statement showing the stock value on donation date
Charity’s receipt showing what was donated
Your brokerage confirmation of the transfer

What to Keep:

Brokerage statement showing the transfer
Charity’s written acknowledgment of the donation
Value documentation (price on donation date)
Form 8283 if donation was over $500

Managing Your Stock Donations

Editing a Donation

If you need to change information:

Find the donation in the list
Click the Edit button (pencil icon)
Update the information
Click Save Changes

Deleting a Donation

If you entered a stock donation by mistake:

Find the donation in the list
Click the Delete button (trash icon)
Confirm you want to delete it

⚠️ WARNING: Deletion cannot be undone.

Searching for Stock Donations

To find donations of a specific stock:

Click in the Search box
Type the charity name or stock symbol
The list filters to show matching donations

Common Scenarios

Scenario 1: Single Stock Donation

You own 25 shares of Apple. Apple is trading at $190/share. You donate all 25 shares to your university.

What to enter:

Charity: University name
Stock symbol: AAPL
Full name: Apple Inc.
Date acquired: (when you bought it)
Original cost: (what you paid for all 25 shares)
Donation date: (when transferred to university)
Value on donation date: 25 × $190 = $4,750

Tax deduction: $4,750 (if long-term holding)

Scenario 2: Mutual Fund Donation

You own shares in a Vanguard Index Fund. You have $8,000 worth. You donate them to your favorite charity.

What to enter:

Charity: (your favorite charity name)
Stock symbol: VTSAX (or whatever the fund is)
Full name: Vanguard Total Stock Market Index Fund
Date acquired: (when you bought the shares)
Original cost: (what you paid originally)
Donation date: (when transferred to charity)
Value on donation date: $8,000

Tax deduction: $8,000 (assuming long-term holding)

Scenario 3: Multiple Donations, One Stock

You own 100 shares of Microsoft. Over 2 years, you donate 20 shares at a time to different charities.

You would enter 5 separate stock donations:

Donation 1: 20 shares MSFT to Charity A (Date 1)
Donation 2: 20 shares MSFT to Charity B (Date 2)
Donation 3: 20 shares MSFT to Charity A (Date 3)
Donation 4: 20 shares MSFT to Charity C (Date 4)
Donation 5: 20 shares MSFT to Charity B (Date 5)

Each donation is a separate entry with its own value on that donation date.

Tax Tips for Stock Donations

Tip 1: Time Donations for Long-Term Status

If stock will become long-term soon:

Wait until it qualifies for long-term treatment
The tax deduction increase is usually worth the wait
Stock prices fluctuate anyway

Tip 2: Donate Appreciated Stock to Charity

Don’t donate stocks that have LOST value:

Donate stock you’ve made money on
If you have stock that lost value, sell it for a tax loss
Keep the loss for your taxes
Then donate appreciated stock

EXAMPLE: You have Stock A (up $5,000) and Stock B (down $2,000)

Donate Stock A ($5,000 deduction, avoid capital gains)

Sell Stock B (take $2,000 capital loss)

Better overall tax result!

Tip 3: Bundle Donations

If you have multiple small stock donations:

You might group them into one larger donation
This can help with IRS Form 8283 requirements
But keep detailed records of each stock

Tip 4: Save Your Valuations

Keep a record of stock prices on:

The day you acquired the stock
The day you donated the stock
This documentation is valuable for taxes

Tip 5: Coordinate with Your Tax Preparer

Before donating stock:

Talk to your tax preparer
They can advise on timing
They can explain the impact on your taxes
They need the information anyway for your return

Frequently Asked Questions

Q: What’s the difference between donating stock and donating cash?

A: When you donate stock, the charity gets the full value you’re deducting AND you avoid capital gains tax. It’s usually more tax-efficient.

Q: Can I donate stock I own in a retirement account (IRA)?

A: Technically yes, but you lose the main benefit. It’s not recommended. Donate stocks outside your IRA instead.

Q: What if the charity doesn’t want my stock?

A: Some charities only accept cash. Ask first! Most larger charities and universities accept stock donations.

Q: How do I know the value of my stock on the donation date?

A: Look it up online:

Yahoo Finance
Google Finance
Your brokerage account
Financial section of major news sites
Use the closing price from that date

Q: Do I need a broker to transfer the stock?

A: No, but your brokerage needs to initiate the transfer on your behalf. Call or log into your account online.

Q: How long does the transfer take?

A: Usually 3-5 business days. Sometimes faster. Check with your broker.

A: Check with your brokerage and the charity. Some don’t accept fractional shares.

Q: What if I made a mistake and want to donate different stock?

A: No problem! Edit the donation record or delete it