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Key Takeaways Many nonprofits, such as hospitals, schools, and various other organizations, will accept stock as a gift or donation. Giving stock often results in a larger donation to the organization, as the gift is tax-deductible and there are no capital gains taxes to pay.
Equity compensation award types The most common forms of equity compensation awards are non-qualified stock options (NSOs), incentive stock options (ISOs), restricted stock units (RSUs), and restricted stock awards (RSAs). The awards themselves generally are not transferable and therefore cannot be given to charity.
An in-kind donation is a non-cash gift made to a nonprofit organization. These contributions can be made in the form of time, services, expertise, and goods, often coming from large businesses but also can come from individuals.
Determining fair market value Since stock prices can go up or down on any given day, the fair market value of a gift of stock is the average between the high and low share prices on the date the gift is given.
Why donate securities? Your gift of securities entitles you to a donation receipt for the full market value (resale) of your contribution. Your gift will result in a non-refundable tax credit that will reduce your income taxes. You can use it in the year of your gift or carry it forward for up to five additional years.
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Fill out the appropriate stock donation forms and send them to your brokerage. Your own stock brokerage firm will be responsible for transferring your shares to the charity. You can usually find stock donation forms in your online account portal on your brokerages website.
When you donate stock to charity, youll generally take a tax deduction for the full fair market value. And because you are donating stock, your contribution and tax deduction may instantly increase over 20%. Would you prefer to donate bonds or mutual funds? The same benefits apply.
Publicly traded securities held for more than one yearsuch as stocks, bonds, exchange-traded funds (ETFs), and mutual fundsare the non-cash assets most frequently donated to charities. Why is this? Its probably because these assets are widely owned by donors and easily transferred to charities.

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