Appreciated Securities

Charitable Tax Planning Opportunity

Donating Appreciated Stock to East Bay Innovations

The following is a summary of the tax benefits of making such a stock contribution and some timing and process considerations. Individual circumstances vary and those interested in donating appreciated securities to charity should consult with a tax advisor about their particular situation.

What is Appreciated Stock?

Appreciated securities are investments that have increased in value from the time they were purchased, and can take the form of publicly-traded stock, closely-held stock or mutual funds. For example, if a stock was purchased for $30 per share and sold for $50 per share, the stock has appreciated by $20 per share. When appreciated stock is sold, the owner generally realizes capital gains equal to the appreciated portion and may be liable for either short-term or long-term capital gains taxes, depending on the length of time the investment was held.

Charitable Tax Planning Opportunity: Donate Shares of Appreciated Stock to East Bay Innovations

Taxpayers who are considering current year charitable contributions and are also facing long-term capital gains taxes on appreciated stock that they have held for more than a year can realize a much more favorable income tax result and charitable impact by making a timely donation of the appreciated stock directly to charity.  If a donor contributes appreciated stock held for more than one year directly to EAST BAY INNOVATIONS,  the donor can usually deduct the fair market value of the donation without realizing any capital gains. The donor should not sell the stock; it should be transferred to East Bay Innovations. 

Check the contribution first with your tax professional. Contributions to East Bay Innovations are tax deductible to the extent allowable by state and federal law. Our federal tax identification number is: 94-3210351.

Please contact Tom Heinz, Executive Director, East Bay Innovations:

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