Boost Your Impact: How Donating Stock Can Maximize Your Giving and Strengthen Our Mission
If you’re looking for a unique way to make a difference, donating stock could be a great option. With the stock market performing well, many investors are seeing significant gains. Rather than cashing out, you might consider donating some of those appreciated stocks directly to a nonprofit like Mind & Spirit Counseling Center. Here’s why this could be a smart choice.
Why Donate Stock?
Stock donations are not only a financially savvy way to support the causes you care about but also a highly impactful one. Here are some of the unique benefits to consider:
- Avoid Capital Gains Tax
When you sell stock, you typically owe capital gains tax on any increase in value. By donating the stock directly, you avoid this tax, allowing you to contribute a larger amount to the nonprofit—tax-free. For instance, if your stock has doubled in value, you won’t owe tax on that gain, which means your gift’s value is maximized. - Receive a Fair Market Deduction
Stock donations also allow you to deduct the full fair market value of the stock on the day of the donation. This can offset your income tax for the year, further enhancing the tax efficiency of your gift. - Strengthen Your Impact
With the market’s recent strength, many investors are in a position to give generously. This means your donation could have an even greater impact than a cash gift, as you’re able to contribute a more significant amount without it costing you any extra out-of-pocket.
When we receive stock donations, it allows for larger contributions that help us create a stronger impact in the community. Because these gifts often have higher values due to tax benefits, they empower us to fund vital programs and plan for the future with greater confidence.
Donating Stock is Easier Than You Might Think
If this sounds like a meaningful way to give, rest assured that donating stock is often a simple process as outlined in the below image from a reputable source. By choosing to donate stock, you’re supporting our mission in an impactful way while also making the most of recent gains in the market.
If you’re interested in learning more about how to give stock, reach out to Heather Stuyvesant or call 515-564-5122. We’d love to help you make the most of your generosity as we wrap up on 2024.