Get Tax Smart this Giving Season by Donating Stock
Fall is here, which means the end of the 2023 tax year is right around the corner. As you plan for the remainder of your year, remember that gifting stock is an excellent way to support YWCA Spokane’s services while benefiting you on your taxes. 
Tax-Savvy Ways to Give with Stock:
Reduce your taxable income & avoid capital gains taxes
When you sell appreciated stock, you have to pay taxes on what you earn. Those earnings are called capital gains, and depending on your income bracket, you could pay up to 20% in capital gains taxes. However, if you give your appreciated stock to a charity instead of selling it, you will not have to pay taxes on it and can deduct it from your taxable income.
Maintain your current stock portfolio while still benefiting on your taxes
If you’d like to keep your current stock portfolio, you can donate shares of appreciated stock and then immediately repurchase the same number of shares. This eliminates all the capital gains on your previous shares and resets your “cost basis” to the current value of the stock, helping you save even more in taxes when you sell the shares in the future.
Maximize your impact on the causes you care about
Gifting stock directly to your favorite charities maximizes your impact. If you were to sell your stock and then donate the profit to a charity of your choice, you would pay taxes on the profit. By gifting the stock directly, you avoid paying any taxes on it, and the charity gets the full value of your stock. It’s a great way to make a greater impact on the causes you care most about.
Gifting stock is easier than ever
Our free online tool through FreeWill makes gifting stock easy. All you need to do is fill out an online form with your stock gift information, sign the form, and then submit your gift. FreeWill protects all of your data with bank-level encryption, and 100% of your gift goes to the YWCA.
A win-win way to donate
The table below from our partners at FreeWill shows how your dollar goes further by gifting stock. This direct donation of $50,000 in shares of stock is worth nearly $3,000 more than selling the stock and donating cash.
| Source | Stocks | Cash | |
| Current fair market value | $50,000 | $50,000 | |
| Federal capital gains tax | $0 | $4,700 | |
| State capital gains tax | $0 | $2,325 | |
| Amount charity gets | $50,000 | $42,975 | |
| Income taxes avoided due to charitable deduction | $21,580 | $18,670 |
Together, we can create a sustainable community where everyone is able to live with dignity and respect.
If you have questions about how to initiate a gift of any of these types of assets, please contact our philanthropy department at 509.789.9305 or by email at donations@ywcaspokane.org.
GIVE STOCK ONLINE
*This post is informational and educational in nature. It is not offering professional tax, legal, or accounting advice. For specific advice about the effect of any planning concept on your tax or financial situation or with your estate, please consult a qualified professional advisor.
By: Claire Schueman
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