How much tax do you pay if you donate stock?

Suppose you can either (1) donate $50,000 in stock held more than one year or (2) sell the stock first and donate the proceeds. The stock has a cost basis of $10,000. You have a 40% combined federal and state tax rate on your income and a combined 20% tax rate on capital gains. 4. Company Stock Can Help Bunch Donations

How do I donate stock to a charity?

You may also need information like the charity’s brokerage account number and mailing address, so ask for this upfront. If a nonprofit organization does accept stock, let your broker know you’d like to donate your shares to charity. Once you give them the charity’s information, the broker will be able to initiate the stock transfer.

Can you donate stock if you're a charitable donor?

Put away your checkbook and open up your brokerage account to maximize the impact of your charitable donations. Donating stock is an underutilized practice. According to a recent study by Fidelity Charitable, only half of respondents knew you could even donate stock, and fewer than one in five have actually done so.