The Coalition for Healthy School Food (CHSF) accepts donations via appreciated, publicly traded US securities (stocks, exchange-traded funds, mutual funds, etc.). Donations to CHSF are fully tax-deductible to the maximum extent allowed by law. Electronic transfers to CHSF can be set-up easily.
In addition to supporting our mission at CHSF, there are two important potential tax benefits to the donor when you donate appreciated securities.
First, donors can get a tax deduction based on the full value of the total stock donation on the date the donation is completed if you have held the stock for more than one year and you itemize deductions for that tax year. For example, let’s say you purchased a stock or fund several years ago for $10,000 and it is now worth $50,000. If you sold the security, you would have a long-term capital gain of $40,000 and would need to pay taxes on that. Let’s assume you donate that security to CHSF. You would receive at tax deduction for the full market value of $50,000, not the original cost basis of $10,000. Hence, this is a win-win for you and CHSF!
Second, you have now avoided that tax bill from selling the stock. If you are in the highest tax bracket, you could be subject to a federal tax rate of 23.8% on that gain of $40,000. In this case, you just saved yourself $9,520 in federal taxes. (Not to mention the state taxes which could also be significant!) This is a very tax-efficient method of giving to CHSF.
Finally, there are limitations imposed by the IRS on how much you can deduct in any year based on your income and type of security being donated. Always check first with your tax advisor to ensure you will indeed receive the full benefit of the contribution.
To make a donation of stock or other publicly traded US securities, please email Amie Hamlin, Executive Director or call 631-525-3650.