A well-timed stock donation can benefit both your chosen charity and your overall tax strategy. New Africa/Shutterstock
Donating appreciated stock that you’ve held for more than one year can greatly benefit the causes you care about and can also be a financially savvy move. Let’s take a closer look.
Avoiding Capital Gains Taxes
When you donate stocks that have grown in value directly to charity, you could bypass capital gains taxes.
Let’s say you purchased shares of a stock for $5,000. And two years later, those shares have grown to $12,000. If you sold those shares and donated the proceeds, you’d face a capital gains tax on the growth of $7,000.
