Skip to content

Donate

The Walnut Creek Seniors Club can now receive donations of stocks and bonds.

Donate Stock!

 

As a general rule, tax laws offer favorable treatment for donating items with long-term capital gains to charitable institutions.  When someone donates stock shares or bonds with long-term gains (currently defined as stock held at least 12 months and a day), the donor receives a tax deduction for the full market value of the shares as of the gift date, AND does not declare the long-term capital gain as income!  If the donor held the stock for long enough to have substantial capital gain, the advantage is essentially a double tax deduction!  In effect, this allows a donor to give more money for less pain than if they sold the stock or bond and donated the after-tax proceeds.

For this to work, the donor must NOT sell the stock and donate the proceeds. That would trigger a tax event for the donor on their gain. The tax advantage comes when the donor gives the shares to the charity. The donor gets the deduction, the charity receives the stock, and when the charity sells it, the charity does not pay tax (it’s a non-profit). So the charity receives the full value of the shares. This is a VERY EFFICIENT way of donating money to a charity.

Charitable deductions for gifts of stock and other appreciated property may be limited based on a person’s adjusted gross income in the year of the gift, or other factors.  Please contact your tax advisor to see what limitations may apply to you.  If the donor exceeds their limit, they can generally carry over the remainder of the contribution to subsequent years.

Before making a stock or bond donation, you should consult with your Tax Advisor to ensure what the implications of the donation will be to your individual tax situation.

Donating stock or bonds is easier than writing a check!  The receptionist has copies of the form, or  click the Donate Stock! link on this page, download the PDF document and fill it out.  You will need the information when you call your stockbroker.  After you have called your broker with instructions for the transfer, send the form to the Walnut Creek Seniors Club – Chief Financial Officer, in order to ensure you are properly credited for the donation.

That’s it!  Thank you for your generous donation.

 

%d bloggers like this: