Learn more about stock donations to WSOS
When you donate appreciated securities that you have held for more than a year, you not only get your current tax deduction for your gift but avoid long-term capital gains taxes!
Not sure how this works? Here's an example:
Sharron has stocks currently valued at $25,000 that she purchased for $5,000 several years ago, which will result in a $20,000 capital gain if she sells the securities. She is in a 35 percent marginal income tax bracket.
If Sharron donates this stock to her favorite nonprofit, here are the benefits she will receive:
- Sharron receives an income tax charitable deduction for the full fair market value of $25,000 – saving her $8,750 ($25,000 x 35 percent) in income taxes.
- Sharron also bypasses the $20,000 capital gain, saving $3,000 in her 15 percent capital gain tax bracket ($20,000 x 15 percent).
- The total tax savings from capital gain and income taxes is $11,750.
Tip: The best stocks to donate are those that have significantly increased in value—particularly those producing low yield that you have owned for longer than one year.
Interested in donating stock to Washington State Opportunity Scholarship?
Prior to sending or transferring the shares, we ask that you or your broker either call 501 Commons to notify us of incoming securities gifts or send us a brief letter or email with the details of your gift, including the number of shares and the name of the stock or fund. If the shares are for funding a planned gift, please also indicate this information.
To notify 501 Commons, you or your broker should contact:
Eileen Moran, Controller
501 Commons 1
200 12th Ave S, Ste 1101
Seattle, WA 98144
Nancy Long, Executive Director
1200 12th Ave S, Ste 1101
Seattle, WA 98144
If you have questions, contact the Development office at firstname.lastname@example.org with information about the type of stock you’re giving and the number of shares, as well as any special considerations you may have.