Donating Stock to Leigh PAPA
GIVE US YOUR GAINS is a new fundraising campaign led by Leigh PAPA that encourages you to donate stock directly to the program. Beyond helping fund performing arts programs at Leigh, you will also see the following benefits:
- By donating stock that has appreciated for more than a year, you are actually donating 20% more than if you sold the stock and donated the cash proceeds.
- You avoid paying capital gains tax.
- You get to deduct the full market value of the stock at the time of the donation.
A Simple Example
Let’s say that you bought some shares of stock or mutual fund for $500.00 in 2016. Today it’s worth $750.00 and you are feeling generous and decide to donate the shares to Leigh PAPA via StockDonator.com. The benefits include:
- You get to deduct $750.00 as a charitable contribution on your taxes.
- You don’t have to pay long-term capital gains tax on the $250.00 appreciation.
- Leigh PAPA receives the proceeds of the donation (minus a 1.9% service fee)
About Stock Donator
Stock Donator is the #1 online processor of Stock Donations. Founded in 2011, Stock Donator is trusted by over 1,500 non-profits, including Leigh Home and School Club (HSC) and Leigh PAPA.
The Process
- Create an account on StockDonator.com
- Add your brokerage account info.
- Request to donate shares.
- Sign the form created by StockDonator and mail it to your brokerage.
- The process takes a couple of weeks.
- Shares are sent to StockDonator for the benefit of Leigh PAPA. Shares are immediately sold, and proceeds sent to Leigh PAPA.
Caveat…
Don’t donate stock if it is worth less than what you paid for it. There is no IRS benefit if you donate stock at a loss. If you donate stock at a loss, you lose the ability to take a tax deduction on that loss. That is why it’s called this the Give Us Your Gains campaign.