Get Stock Donation Form - Cedars Of Marin

In addition to using a donor-advised fund, there are other methods of donating stocks to charity. If the stock exists as a physical certificate, you must endorse it by signing it in the presence of a guarantor, usually a bank or broker. There can also be a form on the back of the stock that requires filling out.

Once the stock donation is listed in your brokerage account, send the donor a tax receipt that lists the date of transfer, the number of shares, and the stock's ticker name. This is a great opportunity to thank them again and assure them that their gift went through successfully.

Assuming there is an active market for the contributed stock, the fair market value of each share or bond is the average price between the highest and lowest quoted selling prices on the valuation date. For example, if the highest selling price for a share was $11, and the lowest $9, the average price is $10.

Holding Period – To claim the full fair market value of the donated stock as a tax deduction, you must have held the stock for more than one year. If you've held the stock for one year or less, your deduction will be limited to the stock's cost basis (the original purchase price).

Receipts are required by the IRS for any donation of more than $250. Once the stock donation is listed in your brokerage account, send the donor a tax receipt that lists the date of transfer, the number of shares, and the stock's ticker name.

Total Cost Basis of Shares is the amount of money you have invested in the shares of a particular fund or individual security. It represents the basic dollar amount that, when compared to the price at which you sell your shares, tells you how much of a capital gain or loss you have realized.

When you file your federal taxes, you must report your stock donation on IRS Form 8283, which is the form for non-cash charitable contributions. You'll file this form with your tax return for the year you donated the stock.