STOCK DONATIONS

Donating stock is a powerful way to give back to the community while also reaping significant tax benefits. By donating stock that has appreciated for more than a year, you can give up to 20% more compared to selling the stock and making a cash donation. The reason for this is you avoid paying capital gains taxes (which can be as high as 20% for long-term holdings). Donors can then claim a charitable deduction for the full fair-market value of the stock at the time of the donation, thus reducing taxable income. This benefits both you and the charities the PCF supports.

Here is an example of how you can capture the tax benefit of transferring just 10 shares of appreciated stock in a company if you have been holding it for 10 years:

Netflix, Inc (NFLX)

Price Shares Value

February 2015 $ 67.84 -  10 shares $ 678.40

February 2025 $1024.65 -  10 shares $10,246.50

Capital Gain $ 9,568.10

While a strong profit was realized, the 29% capital gains tax would amount to $2,774.75. But, by donating the shares, their full value of $10,246.50  can be claimed as a charitable deduction on your taxes. In addition, if you are in the 30% tax bracket for federal and state combined, that amounts to $3,073.95 

Using this example, if you donate just 10 shares of appreciated stock:

PCF/Charities receive $10,246.50

Your tax avoidance $ 2,774.75

Your tax benefit $ 3,073.95

Total $ 5,848.70

If you would like to donate shares of appreciated stock, contact your broker to discuss your options. Give the broker the following information:

Receiving Firm: Cetera Investment Services

DTC - 0701

Account # - 6WX32344

Account Title – The Peninsula Community Foundation