A Guide to Donating Stock

In a world where giving back is more important than ever, individuals are exploring innovative ways to support nonprofits. One such method that is gaining popularity is donating stocks. In this guide, we’ll delve into the process of donating stock to a non-profit organization and discuss the incredible impact your contributions can have on Rainbow Acres and the lives of the Ranchers.

Understanding Stock Donations:

Donating stock is a strategic way to make a charitable contribution while potentially enjoying tax benefits. When you contribute appreciated securities, like stocks, to a non-profit such as Rainbow Acres, you not only support their mission but may also qualify for a tax deduction based on the stock’s current value.

Donating stock directly to a nonprofit allows the donor to forego any capital gains tax on how much the stock has appreciated over time.

For example, if you bought $500 worth of stock and it’s appreciated to $2,000, you have two ways to use it for a $2,000 donation:

  1. Sell the stock for $2,000.  Give the $2,000 cash to the nonprofit.  Take a potential $2,000 charitable deduction. But you’ll owe capital gains tax on the $1,500 increase in value.
  2. Give the stock to the nonprofit.  Take a $2,000 charitable deduction with no capital gains tax liability.  The nonprofit sells the stock and doesn’t owe capital gains tax either.

The real benefit to the donor in donating stock is the ability to avoid the capital gains tax.

Steps to Donate Stock:

  1. Choose the Right Stocks: Select stocks that have appreciated in value since you purchased them. This ensures a more significant impact on Rainbow Acres while maximizing your potential tax benefits. (Rainbow Acres is not a qualified financial, tax, or legal advisor. Contact a qualified financial, tax, or legal professional for expert advice on your specific situation.)
  2. Contact Your Brokerage: Get in touch with your brokerage firm to initiate the stock transfer process. They will guide you through the steps and provide the necessary forms.
  3. Specify Rainbow Acres as the Recipient: Clearly designate Rainbow Acres as the recipient of the stock donation. Ensure you have their official information, including their tax identification number.
      • Rainbow Acres’ Address: 2120 W Reservation Loop Rd, Camp Verde, AZ 86322
      • Tax ID Number: 86-0286420
  4. Complete the Transfer: Fill out the required forms provided by your brokerage to authorize the transfer of the selected stocks to Rainbow Acres. Be sure the transfer information shares the name of the donor. This process typically involves specifying the number of shares and relevant account details. You will also need Rainbow Acres’ broker name, account number, and DTC.
      • Contact us to assist with this information
        • Chief Financial Officer, Paul Higgins: paul@rainbowacres.org
        • Director of Church & Donor Relations, Dawn Jones: dawn@rainbowacres.org
  5. Inform Rainbow Acres: Once the transfer is complete, notify Rainbow Acres of the impending donation. This helps them track and acknowledge your contribution promptly.

By donating stocks to Rainbow Acres, you are directly contributing to the well-being and development of the Ranchers. Share your experience on social media, encouraging others to consider this impactful method of giving. Use the hashtag #StocksForRainbowAcres to create awareness and inspire a wave of support.

As we navigate a world that continually calls for compassion and support, donating stocks to Rainbow Acres emerges as a powerful and strategic way to make a difference. Your generosity can help create a brighter future for the Ranchers, fostering a sense of community and empowerment. Consider this innovative approach to philanthropy and witness the positive change you can bring to the lives of those at Rainbow Acres.