A Gift of Stock

Gifts of stock can sometimes be more advantageous for you than gifts of cash. When you give appreciated securities to Freedom from Hunger, you can benefit in several ways.

Unlocking Hidden Value in Your Capital Gains

Gifts of stock can sometimes be more advantageous for you than gifts of cash. When you give appreciated securities to Freedom from Hunger, you can benefit in three ways:

  1. Your gift may be worth more than what you paid for it.
  2. You avoid paying capital gains taxes.
  3. If the stock has gained in value since it was acquired and it has been held long term, you may deduct the current fair market value of the stock from the current year's taxable income.

Here's how it works:

  Gift of Stock Gift in Cash
Value $5,000 $5,000
Original cost of gift $3,000 $5,000
After-tax value of capital gain (@20% tax rate) $1,600 N/A
Total value to donor of gift given $4,600 $5,000
Savings from tax deduction @ 33% maximum tax rate (1,650) (1,650)
Net cost of gift $2,950 $3,350

If you have any questions about gifts of stock, or other ways you can help, please call Chris Dodson at (530) 758-6200 ext. 1042 or send her an email message.

If you would like to electronically deliver stock directly to Freedom from Hunger, our DTC# is Ø141 and our Account# is 3452-6985 ('Ø' in the DTC# indicates the number zero, not a letter). In order to acknowledge this gift appropriately, please notify us of your name, the stock name, the number of shares and the date of transfer.