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| St. Nicholas Uganda Children's Fund P.O. Box 285 Chardon, OH 44024 info@ugandachildrensfund.org All contents copyright © 2008-2022 St. Nicholas Uganda Children's Fund. All rights reserved. The St. Nicholas Uganda Children's Fund is a registered 501(c)(3) nonprofit organization. All donations are tax deductible. FEIN: 26-1600243 |
| Tax Benefits of Donating Investments |
| Gifts of stock and other securities have become a popular way to give to charity and enable the donor to receive substantial tax savings. When you donate investments, you can deduct the full value of the asset on your taxes and the charity receives the full benefit as well. The charity does not have to pay taxes on the gains if it decides to sell. When you donate appreciated securities (stocks, bonds, mutual funds, ETFs) that you've owned for more than a year, you can reap significant tax advantages. |
| By donating appreciated stock or other securities to the St. Nicholas Uganda Children's Fund, you receive the full deduction for a charitable contribution, and you don't have to pay capital gains tax on the increase in value. For example, if you bought stock ten years ago for $1,000 and it is now worth $5,000, you can donate the shares and can claim the entire $5,000 as a tax deduction. You will not owe capital gains tax on the $4,000 appreciation. |
| Donating shares to charity can be a smart move when you have stocks that have been gaining, but it's better not to donate losing shares to charity. The capital gains tax benefit does not apply because there is no capital gain. In this case, it's better to sell the shares and donate the proceeds from the sale. You can use the loss to offset gains from the sale of appreciated shares, and receive a charitable tax deduction for the cash donation of the proceeds. If you donate the stock instead of selling it, you can claim only the fair market value as a charitable deduction and will not receive the benefit of a capital loss deduction. |
| Investments That Have Increased in Value |
| Investments That Have Decreased in Value |