DONATE
Donate Appreciated Stock
Avoid Taxes & Save Babies!
A WIN-WIN FOR BOTH YOU AND US!
A Donation of Stock Allows You to Deduct the Full Market Value of the Stock from Your Taxable Income.
Essentially, you’re taking a capital gain that you would otherwise owe taxes on and converting it into a deduction that will save you taxes on your normal income, so you are avoiding taxes in two places. PreBorn! then gets a larger donation than expected, if you had to sell the stock and pay capital gains tax prior to making your donation.
Donating stock might feel a little unorthodox for a lot of people, but it can have significant benefits on your taxes, especially if you have a high annual income. You can reduce your taxable income, by avoiding owing taxes on a capital gain and supporting an organization you believe in, all in one fell swoop.
For example, say you have $10,000 of stock that you purchased at a price of $5,000 some 10 years earlier. Even if your plan is to donate all of the proceeds from the sale to PreBorn!, you’ll have to make your donation after you pay taxes on those capital gains. If you are earning less than $425,800 that year, you will owe 15% in capital gains tax on that $5,000 gain you just realized — or $750. So you will have $9,250 left to give to PreBorn!, should you choose to sell and then donate the cash.
But with a donation in stock, you can give the $10,000 in stock directly to PreBorn! so you won’t have to pay that $750 in capital gains tax. Since your donation is now the full $10,000, that same $750 you would have owed in taxes is now money you can deduct from your taxable income as a charitable contribution. Win-win.
If donating to PreBorn! through appreciated stock is attractive to you, please fill out this form to view the information you can give to your broker to make the transfer/donation of your stock :
