How to help: Hurricane Helene and Hurricane Milton guidance
Time is running out to make tax-deductible contributions in 2024. Review our year-end contribution guidelines.
Make a larger impact by gifting stock and donating long-term appreciated securities, including stock, bonds, and mutual funds, directly to charity. Compared with donating cash, or selling your appreciated securities and contributing the after-tax proceeds, you may potentially increase your gift and tax donation.
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 value* if you itemize your deductions
Maximize support to your favorite charities
*For contributions of complex or non-publicly traded assets, generally fair market value is determined by a qualified appraiser in compliance with the IRS.
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. Consider this potential savings example:
Original cost of securities: $25,0001
Federal long-term capital gains rate: 23.8%2
Value of securities: $40,0003
Capital gains and Medicare surtax paid on $15,000 (23.8%)
-$3,570
$0
Total contribution to charity
(after deducting federal taxes)
$36,430
$40,000
Additional amount dedicated to charity
+$3,570
$10,000
$2,380
$25,000
$5,950
$50,000
$11,900
$75,000
$17,850
$100,000
$23,800
$150,000+
$35,700+
Use this calculator when considering donating your long-term publicly traded stock, or consult a professional advisor.
Veronica and Matt, a successful couple with investments, considered donating a portion of their stock to help fund a wildlife rescue group.
At first, they thought of simply just selling the stock and donating the proceeds. Although they had established a private foundation in the past and also considered that option, their advisor suggested that they use a donor-advised fund instead. Using a donor-advised fund provided the ability to claim a higher tax deduction of 30% of their adjusted gross income compared to the 20% limit with a private foundation.
By opening a Giving Account and contributing the shares to Fidelity Charitable, they eliminated capital gains tax exposure and secured a charitable deduction based on the shares’ fair market value. Best of all, Veronica and Matt recommended a larger grant from their donor-advised fund than they would have been able to if they had sold the shares and donated the net proceeds as they originally planned.
Start making a difference today by opening a Giving Account—no minimum required.
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.
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 limitations on 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 cash contributions 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.
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.
We liquidate the stock according to our program 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.
Fidelity Charitable accepts a wide range of financial assets, from cash and checks to stocks and even non-publicly traded assets.
It is a win-win-win-win. I can grant to my favorite charities and I can fund the account by donating appreciated stock.
— Fidelity Charitable donor
I do not need to report each individual donation on my taxes. The account investments are growing according to my risk tolerance.
— Fidelity Charitable donor
A simple, easy way to give away appreciated stock and do it all (contribute and grant) in one place.
— Fidelity Charitable donor
Ready to get started?
Opening a Giving Account is fast and easy, and there is no minimum initial contribution.
Or call us at 800-262-6039
