Stock Donations Offer Many Tax Benefits

Stock Donations

We are pleased to announce that we are now accepting stock donations! Donating the gift of stock is a wise decision that allows you, the donor, to avoid capital gains tax. Additionally, gifting Tee It Up for the Troops a larger donation allows you to deduct a larger amount when you file taxes. Learn more HERE.

Donations to Tee It Up for the Troops help wounded veterans.
Donations to Tee It Up for the Troops help wounded veterans.

 

Tee It Up for the Troops is a 501(C)(3) tax-exempt organization. Donations made to Tee It Up for the Troops are used to reunite combat veterans, helping them to overcome the hidden wounds of war like anxiety, depression, PTSD, and suicide. In addition, we support vetted veteran service organizations that target critical areas of need for military families, including Housing and Homelessness; Post-Traumatic Stress and Traumatic Brain Injury Treatment; Suicide Prevention; Employment; Family & Caregiver Support; and Golf & Sports Rehabilitation.

Stock donations, like cash, check or credit card donations, are tax-deductible.  However, stock donations are more tax efficient for the donor. The benefits of donating stock to Tee It Up for the Troops include avoiding capital gains tax and most donors can also claim an income tax deduction for the stock’s full market value. Also, when you give appreciated stocks directly to charity, your gift can be up to 20% larger because you avoid the taxes you would incur from selling and donating the cash.

Since stock donation offers a multitude of tax benefits, donors will appreciate this easy way to donate stocks to Tee It Up for the Troops to help wounded veterans.

How to Donate Stock to Tee It Up for the Troops

With a donation of securities, capital gains tax no longer applies, allowing you to maximize your giving, allowing you to maximize your giving. You can donate up to 20% more.

A donation of appreciated stocks through Tee It Up for the Troops is a very financially efficient way to donate and can be done in 10 minutes or less. You can start the easy donation process by visiting HERE, scrolling down to the DONATE STOCKS/SECURITY tab, and filling out the online form. Once we receive your form, you will receive simple stock transfer instructions. We also issue a tax receipt to you acknowledging your stock donation once your donation arrives in the Tee It Up for the Troops account.

Tax Benefits of Stock Giving to Tee It Up for the Troops

When you donate stocks to Tee It Up for the Troops, you are giving more in terms of value, without paying more out of pocket. Giving appreciated stock is up to 20% more tax-efficient than cash. The extra bonus comes from the capital gains tax that you would have had to pay if you sold the stock now or in the future. When you donate stocks directly to a non-profit like us, neither you nor our organization will have to pay capital gains tax on such investments. Also, you will still receive the tax receipt for the fair market value at the time of donation.

Stock table.
Stock table.

 

Stock giving can also reduce future capital gains on existing portfolios, even if you want to maintain your current investment. You can give your appreciated shares, then use the cash you were initially going to use to purchase the same number through your broker, to increase your cost basis.

If the stocks you decide to donate depreciate over time, you are better off selling them and donating the money from the sales. With that, you will be able to take advantage of the deduction of capital loss tax and also benefit from tax deductions based on donations to charity.

Donating With Stocks for The Most Impact

As a donor, you always want to make sure that your gift is having the most impact on the cause you care about. A little-known secret in the financial planning industry is that giving your appreciated assets is far more effective than cash. Most donors pay by cash, credit card, or check. However, giving with stock is a great way to benefit our charitable non-profit that helps veterans in need, with the added advantage of a tax deduction and removal of future capital gains.

It’s clear that donating with stock increases your total tax efficiency and allows you to make more impact.

You can start the easy donation process by visiting HERE.


Tee It Up for the Troops is a non-profit that helps veterans and their families. We are not financial or investment experts.  If you have questions, please contact your financial advisor for more information.