Donating stock to charity

Donating stock to charity
Why it can be an excellent choice

By gifting stocks and other long-term appreciated securities directly to a donor-advised fund, you may:

Eliminate capital gains taxes and the Medicare surtax, which combined could be up to 23.8%

Take an immediate income tax deduction in the amount of the full fair market value¹ if you itemize your deductions

Maximize support to your favorite charities

¹For contributions of complex or non-publicly traded assets, generally fair market value is determined by a qualified appraiser in compliance with the IRS.

Potential tax benefits of donating stock

When you contribute securities directly to charity, the receiving organization gains the full proceeds from the sale, and you potentially eliminate capital gains exposure. This win-win could mean more money for the causes you care about.

Donating cash Donating stock

Original value when purchased

$300,000

Current value

$450,000

Capital gains and Medicare surtax paid on $150,000 (23.8%)

-$35,700

$0

Total contribution to charity
(after deducting federal taxes)

$414,300

$450,000

Additional amount dedicated to charity

$0

+$35,700

Greater tax deduction,
greater contribution

Consider your long-term publicly traded stock for a charitable donation, or consult a professional advisor about the best asset to contribute.

Consider your long-term publicly traded stock for a charitable donation or consult a professional advisor about the best asset to contribute.

Appreciated Assets Donation Calculator

Use our Appreciated Assets Donation Calculator to help identify the most highly appreciated assets to donate. Enter the estimated fair market value of the assets you would like to contribute, the cost basis of the shares you are contributing, your federal marginal income tax rate, and your federal long-term capital gains rate.

Note: This calculator is not designed to show the value of securities without appreciation.

Fair Market Value of Proposed Donation:¹

Total Cost Basis of Shares:²

What is the actual benefit of contributing your securities to Fidelity Charitable?

You reduce your taxes by an extra and the charity receives an additional .

Assets Donation Calculator Results
	Contribute securities to Fidelity Charitable	Sell securities and donate proceeds
Fair market value of proposed donation
Long term capital gains tax paid
Charitable contribution / your charitable deduction
Total donor tax savings⁴

Information provided by the Tool is general and educational in nature. It is not intended to be, and should not be construed as, legal or tax advice. Fidelity Charitable does not provide legal or tax advice. You should consult an attorney or tax advisor regarding your specific legal or tax situation. ¹Amount of the Proposed Donation is the fair market value of the appreciated securities held more than one year that you are considering to donate. Donors do not have to give entire positions of appreciated securities. They have the ability to contribute individual tax lots or partial tax lots. ²Cost basis 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. ³Select the 15% federal long-term capital gains rate if you have: 1) taxable income of $44,626 to $492,300 with a tax filing status of Single, 2) taxable income of $89,251 to $553,850 with a tax filing status of Married Filing Jointly, 3) taxable income of $44,626 to $276,900 with a tax filing status of Married Filing Separately, or 4) taxable income of $59,751 to $523,050 with a tax filing status of Head of Household. (Note: All values are for tax year 2023.) Select the 20% federal long-term capital gains rate if your taxable income exceeds the top of the applicable range. If your taxable income falls below the bottom of the applicable range, you are subject to a 0% long-term capital gains rate and the tool is not applicable to you. Please note that the long-term capital gains tax rates depicted in the Appreciated Assets Donation Calculator do not take into consideration that long-term capital gain income may also be subject to an additional 3.8% Medicare tax for taxpayers with income at or above a certain threshold. They also do not include state and local taxes on capital gains, the effects of alternative minimum tax, the taxability of Social Security, the cost of Medicare premiums, or any other factors (including your capital gains tax bracket itself) that may be affected by capital gains realization. Please consult with your tax advisor when making decisions pertaining to your specific situation. ⁴ Total Donor Tax Savings reflects the federal income tax deduction less any long-term capital gains tax paid. It does not account for any state and local taxes, alternative minimum tax, or limitations to itemized deductions that may be applicable to taxpayers in higher federal income tax brackets. Additionally, tax savings may be larger than realized if the size of your deduction causes your taxable income to fall below the bracket floor for the federal marginal income tax rate you provided. The federal income tax and long-term capital gains tax rates depicted in the Appreciated Assets Donation Calculator are values that are based on best available information and may be subject to change in future. Rules and regulations regarding charitable tax deductions vary at the state level. In addition, certain rules and/or other limitations may apply based on your individual circumstances. Appreciated Assets Donation Calculator does not take into consideration any limitations on itemized deductions that may apply to certain taxpayers. Appreciated Assets Donation Calculator is to be used for information and educational purposes only and should not be used as the single source to base tax and charitable donation decisions upon. Please consult with your tax advisor when making decisions pertaining to your specific situation.

Added benefits of a donor-advised fund

Support multiple charities with a single contribution

Take a deduction for the current tax year, and then support as many charities as you’d like over time by recommending grants

Streamline recordkeeping

Consolidate many tax receipts into one

of donors use a donor-advised fund to optimize the financial impact of their donations for both themselves and the charities they support.²

²Fidelity Charitable Powering Generostity: Why and how donors use donor-advised funds, 2022

Some assets take longer to accept and process than others. To ensure that you are eligible for a yearly tax deduction, review our guidelines and initiate your donation early.

Some assets take longer to accept and process than others. To ensure you are eligible for a yearly tax deduction, review our guidelines and initiate your donation early.

Added benefits of a donor-advised fund

Support multiple charities with a single contribution

Streamline recordkeeping

Consolidate many tax receipts into one

of donors use a donor-advised fund to optimize the financial impact of their donations for both themselves and the charities they support.²

²Fidelity Charitable Powering Generostity: Why and how donors use donor-advised funds, 2022

Next steps

1
Open a Giving Account

2
Fund with stocks

3
Take the tax deduction

4
Donate more to charity

Opening a Giving Account is fast and easy, and there is no minimum initial contribution.

Open a Giving Account

Or call us at 1-800-262-6039

Frequently asked questions

Why would I donate stock instead of cash?

Donating securities that have been held for a year or more offers the potential for a double tax benefit—a full fair market value tax deduction and elimination of capital gains taxes.

What is the AGI limit for donating stocks?

Under the Internal Revenue Code, deductions for charitable contributions are subject to certain "percentage limitations" that limit the deductions that can be taken to a stated percentage of adjusted gross income (AGI) in the year the deduction is taken. (Contributions in excess of these percentage limitations may be carried forward up to five subsequent years.) Because Fidelity Charitable is a 501(c)(3) public charity that sponsors a donor-advised fund program, the percentage limitations that apply are generally the most favorable charitable deductions available under IRS rules.

Deductions for contributions of long-term capital gain property (such as appreciated securities held for more than one year) are limited to 30% of AGI.

Deductions for all other contributions (including contributions of cash) are limited to 60% of AGI.

Your ability to take itemized deductions may be subject to certain other limitations. Business entities using a Corporate Giving Account may have different tax considerations. Please contact your tax advisor to determine your tax deductibility limits.

Can I donate stock with unknown basis?

There are many reasons unknown cost basis could occur. For example, it could be the result of an account predating cost basis records or a transfer of shares from one account or account type to another. So long as the stock with unknown basis has been held for a year or more, you can donate it to Fidelity Charitable.

What happens once I donate stock to Fidelity Charitable?

We liquidate the stock according to our policy guidelines. Once liquidated, you can recommend how to invest among our 25 investment options and begin recommending grants to eligible nonprofits. Our Charitable Investment Advisor Program and DonorFlex Program offer additional investment opportunities for eligible account holders.