Donating Publicly Traded Securities to the Binghamton Philharmonic
“A tax-smart approach to maximize your philanthropic impact”

A Win-Win Situation. Donate stock instead of cash.

By making a charitable gift of appreciated securities held long-term (longer than one year), you may increase the tax benefits that you qualify for. You not only may qualify for an itemized tax deduction, but you can also avoid paying taxes on capital gains.

Example: More than two years ago, you originally purchased stocks for $2,000 and today the stocks are worth $10,000. If you sold them and made a charitable gift, you may be able to itemize the gift, but you would also have to pay income taxes on the $8,000 capital gain (this is the difference between the $2,000 you originally invested and the $10,000 you received when you sold). If you donated the stock directly to the charity, you may be able to itemize the gift and would also avoid the capital gains. When the charity sells the stocks, they won’t have to pay taxes on the capital gains either, since they are tax exempt.

How to keep your winning stocks while still utilizing this strategy.

If you are concerned about hurting your portfolio’s performance by donating your highest performing stocks, consider this: If you would have otherwise donated cash, donate the highly appreciated stock instead and use the cash to buy the same stock in your portfolio. This way your portfolio stays the same, but you reset the cost basis to the current price.

Example: More than two years ago, you originally purchased stocks for $2,000 and today the stocks are worth $10,000. Donate the stocks to the charity, wiping out the unrealized capital gains. Buy back the $10,000 worth of stock with the cash you would have otherwise given to the charity. Your portfolio is exactly the same, the only difference is that your cost basis on your high-performing stock increased from $2,000 to $10,000, wiping out your unrealized capital gains.

How do you complete a stock donation?

• If the stock being transferred is currently held at Charles Schwab:
  • Donor completes Charles Schwab Journal Form provided by S.E.E.D. Planning Group, LLC. Contact: 607-217-5091 or info@seedpg.com
• If the stock is being transferred from an outside institution
  • Talk to your financial institution where the account is held that currently holds the stock. They will need:
    • The Binghamton Philharmonic’s Charles Schwab account number and registration information
    • Schwab DTC Clearing #: 0164
    • DTC Code is 40
  • Notify S.E.E.D. Planning Group, LLC and/or the Binghamton Philharmonic that your donation is on its way.
• If you would prefer to transfer stock immediately, you may do so through The Giving Block, the same company that manages our cryptocurrency donations. Click here for more information.