STOCK GIVING

If you would like to make a gift of stock to UnCommon Law, please email our Development Associate, Kendra Tran, at kendra@uncommonlaw.org.

What is the tax benefit of donating appreciated stock?
Donating appreciated stock that you've held for over a year can allow you to deduct the full fair market value from your taxes AND protect your realized gains from being subjected to long-term capital gains tax, which can be up to 37% depending on your tax bracket. Nonprofits are exempt from capital gains taxes, so your stock donation allows the nonprofit to utilize the full amount of the donated funds. By donating assets that have appreciated in value for more than one year, you are more likely to get the highest tax benefits.

Can I give company stock outside of the trading window?
If you received company-distributed stock as an employee and the trading
window is not open, your brokerage will likely reject the transfer request. We suggest you ask your company for the trading windows and give during those time periods, which typically are open quarterly for 3 to 4 weeks at a time.

Can I give through my 401K or IRA?
Because donors often incur penalties for withdrawing these assets before a certain date, we highly recommend consulting your tax professional before donating these types of assets. Donating 401Ks or IRA could result in major tax penalties or even fewer tax benefits than donating cash.

How do I claim my charitable tax deduction?
File Form 8283 for the 1040 tax return. To calculate how much to deduct from your taxes, the general rule of thumb is to deduct the fair market value which is the average of the high/low price of the stock on the day it was received by the nonprofit. This is for assets you've held for more than a year. The date the
stock was received by the nonprofit can be found in the acknowledgment letter you receive from the nonprofit. Include this letter in your tax return.