We at Camp Pearl are sometimes asked whether we can accept contributions of stocks, bonds, or mutual funds. Yes, we can! When appreciated securities are donated (meaning securities that have gone up in value), whether they have been held short term or long term, the donor is allowed a tax deduction just like when cash is donated.

Contributing appreciated securities that have been held for over one year (long term) have an additional tax advantage. In this case, the donor is allowed to deduct the value on the date of donation without having to include the capital gain in income, which can really save some income tax.

For example, say you have a stock that you purchased a few years ago for $6,000 and it is now worth $10,000, meaning it has a $4,000 gain. If you were to sell the stock and contribute the cash to Camp Pearl, you would be able to deduct the $10,000 contribution, although you would also include the $4,000 gain on your tax return. However, if you instead transfer the appreciated stock held over one year to Camp Pearl instead of selling it, you still get to deduct the value of the contribution, without paying tax on the $4,000 gain. Note that if the stock had decreased in value, you would generally come out ahead on your taxes by selling it at the loss and then donating the cash.

Disclaimer: No tax advice is implied. Check with your own tax advisor for more details.

If you are interested in making a stock donation, please contact us and we'll help facilitate the transaction.