Donating non-cash assets such as stock can be one of the most tax-efficient ways to give. Natural Resources has partnered with Overflow to make donating stock online quick, easy, and secure.
What is the tax benefit of donating appreciated stock?
Donating appreciated stock that you've held for over a year can allow you to deduct the full fair market value from your taxes AND protect your realized gains from being subjected to long-term capital gains tax, which can be up to 37% depending on your tax bracket. Nonprofits are exempt from capital gains taxes, so your stock donation allows the nonprofit to utilize the full amount of the donated funds.
What specific stock could I donate?
You can give any publicly traded stock through Overflow. By donating assets that have appreciated in value for more than one year, you are more likely to get the highest tax benefits.
Who is Overflow?
Overflow is a digital solution for donating non-cash assets, enabling donors to give in the most tax-efficient way. Donors can experience the ease of giving via stock or crypto in less than 5 minutes from their mobile device. Overflow also provides givers access to a private Donor Portal which enables visibility into gift history, transaction statuses, and the ability to update connected financial accounts.
By donating via stock, you can save up to 37% in capital gains taxes PLUS itemize the full deduction of your charitable gift.
Is giving through Overflow safe and secure?
Overflow's Information Security Program follows the criteria set forth by the SOC 2 Framework, a widely respected information security auditing procedure.
Overflow does not have access to nor store any brokerage account usernames or passwords. They use Yodlee, a third party provider, that handles the brokerage login process. Over 600 companies including PayPal, Mint, and Amazon use Yodlee to connect their clients’ accounts.
Can I give company stock outside of the trading window?
If you received company-distributed stock as an employee and the trading
window is not open, your brokerage will likely reject the transfer request. We suggest you ask your company for the trading windows and give during those time periods, which typically are open quarterly for 3 to 4 weeks at a time.
Can I give through my 401K or IRA?
Overflow can process all whole shares of publicly traded stock, including 401Ks and IRAs. However, because donors often incur penalties for withdrawing these assets before a certain date, we highly recommend consulting your tax professional before donating these types of assets. Donating 401Ks or IRA could
result in major tax penalties or even fewer tax benefits than donating cash.
How do I claim my charitable tax deduction?
File Form 8283 for the 1040 tax return. To calculate how much to deduct from your taxes, the general rule of thumb is to deduct the fair market value which is the average of the high/low price of the stock on the day it was received by the nonprofit. This is for assets you've held for more than a year. The date the
stock was received by the nonprofit can be found in the acknowledgment letter you receive from the nonprofit. Include this letter in your tax return.