1. Receive a Tax Deduction
If you have owned the stock for a year or more, you will receive a percentage (depending on your tax bracket) of the stock’s fair market value on the day you make your contribution. A stock’s fair market value is the amount you would receive if you sold the stock. If you have owned stock less than a year, you can still donate it, but you will only be able to deduct the fair market value of the stock when you purchased it (not the value it holds on the day you donate it).
2. Save on Capital Gains
By donating stocks or mutual funds, you avoid paying capital gains taxes. For example, if you originally paid $500 for your shares that are now worth $2,000, your gain would be $1,500. If you were to sell those shares you would currently have to pay 15% of the $1,500 gain. By donating the shares in this example, you would avoid paying $225 in tax.
3. Stocks are the same as Cash
Whether you donate $1,000 in cash or $1,000 in stocks, Eco-Cycle receives the same amount of money. You enjoy the capital gains tax savings, and Eco-Cycle puts your money to work.
4. It’s Easy
To donate stock all you need to do is contact your broker or call Eco-Cycle for more information.
Please consult a tax planner or financial advisor to discuss your financial situation, your goals and your options for giving.
