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[Video] Donating Appreciated Stock

by Steve Smalenberger / December 10, 2017


Maybe you’re considering a way to support a not-for-profit organization that you believe in.  Here’s a way to do just that with something that you already own… appreciated stock.

What is appreciated stock?  It is an investment that has grown since you bought it.

Let’s use an example and use some number in order to make it more visual.

Maybe you bought a certain stock years ago for $1,000 and over time it has increased in value and is now worth $11,000.  If you were to sell this investment, you would recognize a long-term capital gain of $10,000.

Is it possible for you to provide financial support and do so in way that benefits both you and the organization?

Yes, here’s one way to do just that.

Instead of giving cash or first selling the investment and then giving the proceeds, it would be most beneficial to donate the stock directly to the organization.  This method would still provide you with the tax deduction for the fair market value of the investment but also help you avoid recognizing capital gains from the sale.

While this is not for everyone, for those situations when it does make sense… it can be a win win.

If you are considering this before year-end, it is best to ask custodian and the organization what procedures are required and the timeframe in which to complete the donation.



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Steve Smalenberger

Steve enjoys getting to know clients and hear their unique stories and the lessons learned which has brought them where they are today. One of the reasons he enjoys what he does is the ability to show the outcome that can be achieved with different choices. He also enjoys continually learning.