By donating stock, rather than selling it and donating the cash proceeds, you get a deduction for the Fair Market Value at the date of contribution, as well as avoiding Capital Gains taxes. Assuming the stock is worth more now than when you purchased it, this can be a great benefit to you, as well as a great donation for FOAS.
Example: If you purchased stock for $1,500 and it is now worth $5,000, we get the full current value (our policy is to sell stocks immediately) and you get to deduct the full $5,000 from your taxes, and yet it only cost you $1,500. If you were to sell the stock first, and donate the proceeds, you might also be responsible to pay Capital Gains on the $3,500 increase in the value of the stock.
Keep in mind that everyone’s situation is different! Also, with stock donations you are limited to 30% of your AGI (adjusted gross income,) meaning you may need to carry deductions into future years if your contribution exceeds this threshold. We encourage you to speak with your financial advisor if you have any questions. When you’re ready or if you have any questions for us about filling out our form please don’t hesitate to contact us at .