Program Information
About Donate Stock
Did you know stock gifting is one of the most tax-friendly ways to support our mission here at CAM? When you donate stock, you can potentially avoid the tax on the gain, while deducting 100% of the value of the contribution.
How To Participate
Put Stock in Something That Matters
When you donate stock rather than selling it, CAM benefits from the proceeds that would have otherwise been paid toward taxes upon selling. This is a win-win for you and us! As illustrated below, the savings add up!
Best of all, it’s fast, safe and free to donate stock to Cypress Assistance Ministries (CAM). Click the button below to initiate a stock gift in minutes, at no cost, through a secure portal with our partners at DonateStock.
Remember, charitable giving doesn’t always mean cash. By gifting stock, you can have greater impact
without denting your pocketbook.
FAQ’s
What are the benefits of donating stock?
● Avoid paying capital gains tax on appreciated securities held more than one year. Capital Gains and
NII Taxes range from 18.8% to 37.1%, depending on income and state of residence.
● Receive a charitable tax deduction for the full fair market value
● Have greater impact by making a pre-tax gift
What are the guidelines around charitable stock gifting?
● You can donate publicly traded stocks, mutual funds, and ETFs held for more than one year
● Stock may not be restricted and must be traded on a major exchange
● Deduction is limited to 30% of your adjusted gross income (AGI)
● For gifts over $500, file IRS Form 8283 with your tax return.
How does the stock gifting process work?
● Stock gifts occur via transfer of shares from your account to an account managed by our
stock gifting partner, Donatestock Charitable, Inc.
● There’s no paperwork, calls or email required. Everything is done online in minutes.
● It takes 2-5 business days for the stock to be transferred; you’ll be notified when the stock
arrives.
● An acknowledgement letter (tax receipt) will be sent to you by Donatestock Charitable
when the gift is received.
● The gift will be valued based on the date the shares are received.
How do I decide which stocks, ETFs or mutual funds to donate?
Consider these criteria when donating appreciated securities:
● Portfolio concentration: Donate shares of overweighted positions to diversify your portfolio.
● Biggest gainers: Donate your biggest long-term winners and select the Lot with the lowest
cost-basis for maximum savings.
How do I donate stock without giving up future price appreciation?
● A little-known strategy is to donate appreciated shares and purchase them back in the open
market. This allows you to deduct the gift, avoid capital gains tax, and reset your cost basis
at the current price. This will reduce your tax when you sell that stock in the future.
● Example: donate 1 share of Apple (worth $200) that was purchased for $50. You may
deduct the $200 gift, avoid the tax on the $150 gain and establish a new cost basis at $200.
Is it safe to use the DonateStock app?
● Yes! DonateStock was designed with security and privacy in mind and is hosted on one of
the world’s most trusted platforms. DonateStock has passed security and compliance
assessments from some of the country’s largest and most sophisticated organizations.
What if I prefer to have my advisor do it for me?
● Direct your advisor to Cypress Assistance Ministries page on donatestock.com
● They will click “Donate Stock” and select the Advisor option, allowing them to quickly obtain
the information they need to initiate the gift on your behalf.
How much does it cost?
● There’s no cost to you or your advisor.