When you donate an appreciated security to Pets Alive, you do not have to pay capital gains tax on the gain. Giving a highly-appreciated stock allows you to shift them out of your portfolio without penalty. And when Pets Alive receives the stock, we can sell it at its current market value and use the cash. Charities do not have to pay capital gains on gifts they receive, so that tax is avoided altogether.1
Why Give Stock?
Capital Gains Tax Waived
Tax Deduction for the Full Stock Value
You will typically receive a tax deduction for the full value of the security on the day it is donated. Giving appreciated securities can save you hundreds or even thousands of dollars versus a cash gift of the same amount. See the Charles Schwab2 example below for details.
|Option 1: Sell stock & donate proceeds||Option 2: Donate stock directly|
|Current fair market value||$100,000||$100,000|
|Long-term capital gains tax||$14,250 paid||$14,250 avoided|
|Amount donated to charity||$85,750||$100,000|
|Tax deduction savings||$24,010||$28,000|
How to Donate Stock to Pets Alive
If you’re interested in making a stock donation, please contact Development and Communications Director Megan Reece at (812) 349-1349 x104. She will need to provide you with the following information before you are ready to make your donation:
- The name of the broker who can receive stocks
- The name of the account
- The account number
- The DTC number for stock transfers