FAQ

• What are the tax advantages of stock donations?

  Donating stock can be a tax-smart way to give. By contributing appreciated securities held for more than one year, you can potentially avoid paying capital gains tax (which can range from 18% to 40%). Plus, you may be eligible to deduct the fair market value of the donated stock on your tax return. This means TMF receives the full value of your gift, and you may receive significant tax savings. Please consult your tax advisor to understand your specific situation.

• Will I get a receipt for tax purposes?

  Yes! If you use the DonateStock platform, you will receive a receipt from DonateStock Charitable for the U.S. dollar value of your stock gift after the transaction is completed and the proceeds are distributed to TMF. The receipt can be downloaded directly from your donor dashboard. If you donate stock using another method, a receipt will be sent to you from TMF once the transaction is completed. 

• What are the guidelines around charitable stock gifting?

  You can donate publicly traded stocks, mutual funds, and ETFs that you have held for at least one year. The stock must not be restricted and must be traded on a major exchange. The IRS allows you to deduct up to 30% of your Adjusted Gross Income (AGI) in stock gifts each year. For stock gifts exceeding $500, you’ll need to file IRS Form 8283 with your tax return.

• Is there a limit to how much stock I can donate?

  There is no limit to how much stock you can donate. However, the IRS limits the deductible amount of non-cash charitable contributions to 30% of your Adjusted Gross Income per year. Please speak with your tax advisor to fully understand how this applies to you.

• Who is DonateStock?

  DonateStock is transforming charitable giving by making stock gifting easy and accessible to millions of nonprofits and donors. DonateStock streamlines the stock gifting process to help donors save on taxes while helping nonprofits tap into new sources of funding.

  For decades, the IRS has allowed individuals to deduct the full value of their donation (whether it’s cash or stock). But if you donate appreciated stock, you can avoid paying capital gains tax on the gifted securities. Furthermore, you can deduct the entire value of the donated stock for tax purposes. While the process used to be painstaking for the donor, DonateStock makes it fast, safe, and free to donate stock in minutes.

• How long does the transaction process take place?

  While it only takes minutes to initiate a stock gift, it generally takes five to seven business days for the stock to be transferred, sold, and distributed to TMF. You may track your stock donation status in the dashboard of your donor portal. TMF receives U.S. dollar disbursements the week after the shares are received.

• How will I know if/when my donation was received?

  You will receive email notifications at key steps: when your donation is submitted, when the stock is received, and when the funds are transferred to TMF. You can also track the status of your gift anytime by logging into your donor dashboard.