Stock that has increased in value is one of the most popular assets used for charitable giving, once it has been held for more than one year. Making a gift of securities to us offers you the chance to help our organization while realizing many important benefits for yourself.

Getting Started

A stock portfolio is often among the most valuable assets you own—and one that can carry substantial capital gain, or appreciation in value. With careful planning, you can reduce or even eliminate federal capital gains tax while supporting our work. Read on to see why donating stock can offer even more tax benefits than writing a check.

Did you know?

Stocks are considered to be appreciated for tax purposes if they're worth more now than when you purchased them.

How It Works

As stock prices increase, so do the taxes you owe on the long-term capital gain, which are generally charged at a rate of 15 percent (0 percent if you are in the 10 and 15 percent tax brackets) through 2012. But when you donate publicly traded stock you've owned for more than one year to a qualified charitable organization such as the El Dorado Community Foundation, you enjoy two major tax benefits:

• You will be exempt from paying capital gains taxes on any increase in value—taxes you would pay if you had otherwise sold the securities.
• You are entitled to a federal income tax deduction based on the current fair market value of the securities, regardless of their original cost.

The income tax deduction for long-term capital gain property is limited to 30 percent of your adjusted gross income in the year you make the gift, but your excess deduction is deductible for up to five additional years.