Donations of Negotiable Instruments
A gift of appreciated, publicly trade securities is the transfer of ownership of stocks or bonds. If you own shares that have increased in value, 50% of the capital gains are taxable. However, if you donate these shares to a charity, the gain is 100% tax- exempt. The following example illustrates the different savings to be realized through a cash donation from proceeds of stock sales and a gift of appreciated, publicly traded securities.
The elimination of capital gains on donations of publicly listed stock is also available to people who wish to donate employee stock options. To donate securities, describe the securities you wish to donate, and direct your broker to electronically transfer them to us. You will receive a charitable tax receipt for the closing price of the security on the trading day that it is received into our account.