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

1. Open a DAF at Fidelity Charitable / Schwab Charitable / Vanguard Charitable (free, takes 10 minutes online)
2. 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
3. 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 donations@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

Electronic stock transfers (DTC) take 3-5 business days to complete. To count for the current tax year, the shares must be in our account by December 31. Initiate by December 20 to be safe.

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 electronic transfer (DTC): the date the shares enter our brokerage account. For year-end, initiate by December 20.

Easiest route: via DAF → · Email for direct-transfer instructions