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Year-End Financial Planning: Donating Appreciated Stock Is a Tax-Efficient Option

Stock Contributions

This blog post provided by Laura Gilman, JFLA Board Member and SVP Financial Advisor at Wealth Enhancement

As we move into fall and towards the end of the year, an important theme comes into focus: planning ahead as the tax year draws to a close. It is the perfect time to consider a smarter way to support JFLA by donating appreciated stock.

Many donors wait until December to make charitable gifts, but making stock donations earlier gives you more time to coordinate with your financial advisor, avoid year-end bottlenecks, and enjoy peace of mind knowing that your giving plan is already in place.

Why Stocks? Giving appreciated stocks to JFLA offers two key advantages:

  • Avoid capital gains tax: Simply put, you will not pay taxes on the increase in value of the stock over time.
  • Diversification: Another benefit is to donate stock you currently have in concentrated positions to diversify your investment account.
  • Claim the full deduction: If you itemize, you can deduct the stock’s fair market value on your taxes. You can deduct the fair market value of the stock (what it is worth on the day you donate it), not just what you originally paid for it.

For example, if you bought Apple stock for $2,000 ten years ago that is now worth $10,000, donating it directly allows you to deduct the full $10,000 while avoiding thousands in capital gains tax.

Your stock donation does not just create tax savings, it creates opportunities. With your support, JFLA can deliver on its mission of interest-free loans that help people stay housed, pay for healthcare, cover education costs, start families, and recover from crises.

How to Donate Stock

  • Contact your financial advisor or broker to initiate a transfer of shares to JFLA.
  • Reach out to Jamie Farr, JFLA's Donor Relations Associate, at jamie@jfla.org to receive our brokerage account details.
  • We will work with you to ensure your gift is transferred smoothly and acknowledged promptly.

Start Your Year-End Giving Today Donating stock now ensures you maximize your tax benefits while strengthening our community. As you plan ahead for the end of the year, consider making a stock gift to JFLA. This is a tax-smart way to live your values and help others thrive.

Please note: JFLA does not provide tax, legal, or financial advice. We encourage you to consult with your professional advisor to determine how a gift of stock may fit into your personal financial and philanthropic goals.

Find more information on donations to JFLA at Ways to Give.

JFLA Assistant