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The team from Charity Navigator, the nation's largest independent charity evaluator and leading donor advocate, shares their thoughts on emerging nonprofit-sector issues and offers tips to better inform your intelligent giving decisions.

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Wednesday, December 16, 2020

Stock Giving: Making your philanthropy beneficial for all

 


As we near the end of the year, many donors are finalizing their plans for giving. This year has seen generosity unlike other years, and, at the same time, donors are being more intentional with their donations. We all want to know that our hard-earned dollars are being as impactful as possible for the charities we care about. 

Here at Charity Navigator, we know that our users want to find the most efficient and effective organizations to support. Equally as important, we want to equip our users with the knowledge of how to make their donations go further. We often forget that the method of donation can play a role in increasing impact for important causes: credit card, PayPal, and checks are extremely common methods, mostly for their ease of use. And individuals who donate to numerous causes often create donor advised funds (DAFs) to help disperse their larger gifts.


In addition, donors are increasingly considering long-term appreciated securities, such as stocks, bonds, and mutual funds. With these methods, you are giving charities more, in terms of value, without increasing the amount given, in terms of out of pocket cost. This can make an even bigger impact and can allow more flexibility on the part of the charity.


  • Avoid capital gains tax. Donations of stock are exempt from capital gains taxes that might be applied if your stock value has grown since you bought it. 
  • Receive federal and state income tax deductions. 
  • No credit card fees placed on the charity! While many donors choose to cover the fees, many do not! Every little bit helps support a charity’s mission.
  • With benefits on your taxes, you might be in a position to consider a larger donation.
  • Larger investments help stabilize nonprofits and can allow for sustainable growth.
  • You might be surprised to learn how easy it is! Many charities include stock transfer information on their website. If they don’t, you can contact the charity or your financial advisor for more information.

Here at Charity Navigator, we are all about increasing the impact of donations and supporting donors. If you have seen your stocks grow this year or over time, consider gifting investments to charities whose causes you support. Thank you for being committed to philanthropy.

*Charity Navigator is not a financial advisor. For financial advice, please speak to an expert. 

Don’t forget, Charity Navigator is a charity too! We’ve worked to make it as easy as possible for you to donate your stock to us. If you’re in a position to donate, click here to give now.

Written by Grace Dowd, Major Gift Officer at Charity Navigator. Grace works directly with donors investing in the important work of philanthropy. Contact her at  gdowd@charitynavigator.org.

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