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GIFTS OF STOCK – EVERYTHING OUR DONORS NEED TO KNOW  

November 18, 2021

GIFTS OF STOCK – EVERYTHING OUR DONORS NEED TO KNOW  

Everything we do for the boys we serve works to help them become stalwart young men when they graduate. Our approach to finding paths for our young men to leave behind the trauma-induced behaviors that brought them to us, provides them with maps to leave the hurt of their early lives behind.

Hanna Boys Center relies on the generosity of its donors. Cash gifts account for the largest portion of the gifts we receive. However, in this document, we are highlighting another great way to give, answering a few FAQ’s making a stock gift to Hanna Boys Center.

If you have questions, please reach out to Dennis Crandall at dcrandall@hannacenter.org or Direct:  707-933-2572

What are the tax benefits of donating appreciated assets?

By donating stock rather than selling it, you will avoid paying a capital gains tax. Capital gains tax is a tax on the profit made from the sale of a non-inventory asset like stock. These can be as high as a federal tax rate of 20% of long-term holdings (or stocks being held for more than one year), and for some states (like California with a 13% tax rate) an additional tax rate on top of the federal rate. If you donate a long- term holding and itemize deductions, you can also take a charitable deduction of the entire donation.

Can I have an example of how transferring stocks can save me money?

When you donate stocks, you are essentially saving 30% on taxes by excluding gains from your returns. Let’s say you want to give a gift of $1000 to our organization this year. If you want to sell the stock before donating it, you would have to sell about $1400, and pay the $400 in taxes on the sale of the stock before donating the remaining $1000. But if you transfer the stock directly to the organization, you only need to transfer the $1000 worth of stocks, and you won’t have to pay the tax.

The stock market is trending upwards, but it’s been a tumultuous year. Is it still a good time to donate stocks?

Yes – and now might be the best time to donate stocks. The stock market has been trending upwards. Donating stocks today ensures you can take advantage of these highs, and give the powerful gift you intend.

I’m convinced that donating stock is a great way to give, but I don’t want to lose my holdings.

After donating stock, you are eligible to buy the same stock again within the day. This allows you to make a powerful, tax-savvy gift while maintaining your portfolio, no matter the market.

I work with a financial advisor. Should I consult with them?

Yes! We encourage you to consult with a financial advisor before making any donation of appreciated assets. It will save you both time and it will ensure that you receive the tax documents you need to deduct the donation on your upcoming return.

For my gift to be eligible for my tax return, when should I give?

We recommend following the market to ensure that you can give the best gift based on the assets you hold. However, gifts must be made by December 31st of the year preceding your filing. (Example: To make an eligible gift for your 2021 taxes, you must donate stock before December 31, 2021).

For more information on making a gift of stock please contact dcrandall@hannacenter.org