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Donate stocks owned for at least one year
Donate Stocks owned for at least one year. Donors will obtain a much larger tax benefit for stock donated
after the 1-year threshold. This is because stock sales are subject to capital gains taxes with different
treatments based on how long the investor has held the stock. If it’s been held less than a year,
the tax benefits are reduced. For this reason, encourage donors to donate stocks they’ve had
at least one year and avoid donating stock owned for less than one year
Successful stocks
Stocks that have appreciated significantly are great to consider for a charitable contribution because if
the donor has stocks that have increased in value, they will have a large capital gain at the time of
sale. Thus, these are good stocks to target for a donation as opposed to stocks that have lost value.
Publicly traded stocks
For the sake of the charitable organization, it’s always best to donate a stock that trades on a
public exchange because other stocks or assets are more complex security sales. Privately held stocks
or restricted shares of public stocks are not ideal for charitable donations.
