Stock + appreciated securities gifts
Donating stock you've held more than a year is one of the most tax-efficient ways to give. You bypass the capital-gains tax AND deduct the full fair market value.
Why stock gifts beat cash gifts (for appreciated positions)
Suppose you bought $10,000 of a stock that's now worth $50,000 (held >1 year). Two paths:
- Sell, donate cash — You owe long-term capital-gains tax on $40,000 gain (15-23.8% federal). After tax, you have ~$40,500 to donate. Charity receives $40,500. Your deduction: $40,500.
- Donate stock directly — Charity receives $50,000 (no capital-gains tax for either party). Your deduction: $50,000.
Same out-of-pocket cost to you. Charity gets ~$9,500 more. You deduct ~$9,500 more. Strictly better unless you specifically need the cash.
Two transfer paths
Path 1 (recommended): via Donor-Advised Fund
- Open a DAF at Fidelity Charitable / DAFgiving360 (formerly Schwab Charitable) / Vanguard Charitable (free, takes 10 minutes online)
- Contribute the appreciated stock to your DAF — they handle the broker-to-broker transfer, sell the position tax-free, and credit cash to your DAF
- Recommend a grant to Feed America (EIN 92-1761881) from your DAF — see DAF instructions
Why this beats direct: you don't need to coordinate with our brokerage account, the DAF documentation is bulletproof for tax purposes, and you can repeat the pattern with any charity in the future.
Path 2: direct broker-to-broker transfer
Email info@feedam.org with subject "Stock gift transfer instructions". We respond within 24 business hours with our brokerage DTC number, account info, and the simple instruction sheet to give your broker.
Year-end deadline
A stock gift counts when the shares arrive in Feed America’s account, and DTC transfers take several business days. Start the transfer by early December so the shares arrive by December 31.
Frequently asked questions
Why donate stock instead of cash?
Bypass capital-gains tax AND deduct full fair market value. Charity gets 20-30% more for the same after-tax cost to you.
How is the gift value calculated?
For publicly traded securities, fair market value is the average of the high and low trading prices on the date the gift is irrevocably out of your hands.
What forms do I need?
Form 8283 if your stock-gift deduction exceeds $500. Gifts >$5,000 require a qualified appraisal (publicly-traded securities are usually exempt — talk to your tax advisor).
When does the gift count for tax purposes?
A stock gift counts when the shares arrive in Feed America’s account. DTC transfers take several business days, so start the transfer by early December.
Easiest route: via DAF → · Email for direct-transfer instructions · For advisors