Stocks and Securities
Support IDEAS with Stock or Securities Donations: A Smart and Impactful Way to Give
Donating appreciated stocks or securities is a tax-savy and powerful way to support IDEAS. By giving securities directly, you can avoid capital gains taxes, claim a charitable deduction, and make a significant impact on financial literacy, poverty alleviation, and sustainable development in underserved communities.
Why Choose a Stock or Securities to Support IDEAS?
- Maximize Your Tax Savings: Avoid paying capital gains taxes on appreciated stocks, which can save you up to 20% in taxes. Claim a charitable deduction for the full fair market value of the securities.
- Make a Bigger Impact: By avoiding taxes, you can donate more, enabling IDEAS to fund programs that empower communities and create sustainable change.
- Simplify the Process: Transferring securities directly is straightforward and eliminates the need to sell assets or manage proceeds.
- Support Causes You Care About: Your donation fuels IDEAS’ work in financial literacy, poverty reduction, and sustainable development, helping underserved communities achieve long-term success.
Why Give Through a Stock or Securities Donation
- Tax Efficiency: Donating appreciated securities lets you bypass capital gains taxes and maximize your gift’s impact. For example, giving $10,000 in stocks directly is more tax-efficient than selling and donating the cash.
- Greater Charitable Deduction: You can deduct the full fair market value of the securities, provided you’ve held them for more than one year.
- Reduce Your Taxable Income: Lower your overall tax liability while aligning your finances with your philanthropic goals.
- Simplicity: Transferring securities to IDEAS is quick and easy, with support available to guide you through the process.
How to Make a Stock or Securities Donation to IDEAS
- Contact Your Financial Institution: Inform your broker or custodian of your intent to donate securities. They will handle the transfer.
- Provide IDEAS’ Information: IDEAS’ brokerage account details will be shared upon request to facilitate the transfer. Email to donations@ideasnet.org to obtain our brokerage account details.
- Complete the Transfer: Your financial institution will transfer the stocks or securities directly to IDEAS’ account.
- Notify IDEAS: Let us know about your donation so we can ensure it’s processed correctly and provide a tax acknowledgment letter.
- Claim Your Tax Benefits: Work with your tax advisor to ensure you claim the charitable deduction for the full fair market value.
IRS Requirements
Eligible Securities
Publicly traded stocks, bonds, or mutual funds are the most common types of securities eligible for donation. Privately held securities may also be donated but require additional steps for valuation.
Long-Term Holding Requirement
To claim the full fair market value deduction, you must have held the securities for more than one year. Short-term holdings are deductible only at their cost basis.
Charitable Deduction Limits
Deduction is generally limited to 30% of your adjusted gross income (AGI) for appreciated securities. Excess amounts can be carried forward for up to five years.
Direct Transfer Required
To maximize tax benefits, the securities must be transferred directly to IDEAS, not sold and donated as cash.