Stock Donation Receipt Template


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A stock donation receipt is the written record that a charitable organization provides to a donor of stock shares. It always includes the number of shares donated and the corporation’s name to which the shares belong. The receipt should never assign a monetary value to the shares.

Table of Contents

Tax Deductions for Stock Donations

Donating stocks provides two valuable tax incentives. First, donors can claim deductions on their donated stocks’ total fair market value (FMV). The FMV of a stock is the amount it would have sold for on its donation date.

It’s important to note that if a donor’s total annual deductions are lower than that year’s standard deduction, stock donations won’t benefit their tax return. On the flip side, the maximum tax deduction for stock donations is 30% of the donor’s adjusted gross income.

Capital Gains Tax

The second tax incentive provided by stock donations is its effect on capital gains taxes. A capital gain is the profit earned when an individual sells or exchanges an asset, including stock, for a higher price than they purchased it. Once the individual does sell the stock, they are required to claim it on their income tax return for that filing year.

Long-term capital gains come from assets held by the owner for more than one year. Depending on the owner’s income, the IRS taxes these gains at either 0%, 15%, or 20%.

Short-term capital gains come from assets held by the owner for less than one year. The IRS taxes these gains as ordinary income based on the owner’s tax bracket.

When a stock is donated to an eligible charity organization, it automatically receives a 0% capital gains tax rate for the filing year it was donated.

How to Donate Stocks (4 Steps)

Step 1: Find an Eligible Charity

A charity needs a brokerage account to accept stock donations. Donors can check charity websites for this information or request it directly from a charity’s treasurer.

Step 2: Complete Paperwork

Fill out and sign any required donation paperwork to submit to the charitable organization and the donor’s brokerage firm. The brokerage firm will process the transaction.

Step 3: Finalize Transaction

Follow-up with the charity and the brokerage firm to confirm the donation executed on both ends. Request a stock donation receipt from the charity at this time.

Step 4: Obtain Receipt by December 31st

The donor must receive a donation receipt by December 31st for the contribution to be eligible for a deduction. If the donor hasn’t received a donation receipt towards the end of the year, it’s wise to follow up with the charitable organization to get a copy.