Save big by donating appreciated stocks to Shura Council
You can save big by donating your highly appreciated stocks to Shura Council. When you do that (1) you are not required to pay capital gains tax on the appreciated stock value, and (2) you are allowed to take a tax deduction on the appreciated value of the stocks. You are invited to donate your appreciated stocks to Shura Council.
To donate appreciated stock to Shura Council, please download the Account Transfer Form, complete the documents, and submit them to your financial institution.
For more information or questions, please call the Shura Council office at 714-373-6473.
The following is an example of how donating stock to Shura Council can be beneficial to you:
Ahmed owns 1,000 shares of Halal stock, which is traded on the New York Stock Exchange. He paid $1,000 for the shares back in 2007 and they are worth $5,000 today. He gives the stock to Shura Council and deducts its $5,000 fair market value as a charitable contribution. Ahmed does not need to pay the 15% capital gains tax on the $4,000 gain in the value of his stock.
Shura Council then sells the stock and pays no taxes on the $5,000 received. If Ahmed sold the stock, he would have been required to pay a $600 long-term capital gains tax on his $4,000 profit (15% x $4,000 = $600), which would have left him only $4,600 from the stock sale to donate to nonprofit.