Donating shares
Make a donation of shares, bonds or mutual funds and take advantage of major tax benefits.
There’ll be no capital gains tax and you’ll get a receipt equivalent to the market value minus transaction fees.
Donating shares or exchange-traded funds is a simple way of supporting the FIGM while also getting tax benefits.
Both for the donor and the Foundation, it is better to transfer investments directly to the charitable organization than to sell them and donate the profits. The donor won’t have to pay income tax on the capital gain if the securities are given directly to FIGM. In contrast, if you sell the securities prior to making the donation 50% of the gain will be taxable, which means more income tax for you to pay, and less money for the Foundation.
A donation will not be exempt from capital gains tax if the shares are sold and the money then given to the charitable organization. The donation must be made “in kind” to be eligible for the tax exemption on the capital gain, so securities must be transferred directly into the Foundation’s brokerage account. You will receive an income tax receipt for their fair market value as of the date of the transfer.