Donating appreciated shares to charity can be a tax-effective way of giving. Eligible donors who itemize their tax returns may take a charitable contribution deduction on the holdings donated to ShareGift USA, a registered 501(c)3 organization. Individuals donating shares that have been held in excess of one year may claim the fair market value of the shares being donated. Donors contributing shares held one year or less will be able to claim the lower of their basis in the donated shares or the fair market value at the time of donation.

Donors are advised that the Internal Revenue Service requires appropriate substantiation for any charitable donation. For donations of securities a donor is required to have a letter of acknowledgment from the donee stating the date of receipt of the shares, the company name and number of shares received. ShareGift USA will provide appropriate documentation for tax purposes.  For donations of publicly traded securities ShareGift will indicate the Fair Market Value (based on the average of the high and low per share prices on the date of receipt) of the gift.  The donor should also maintain proof of the acquisition date and cost of the shares donated.

Please note:
 ShareGift USA cannot give financial advice about a donor’s personal circumstances or tax position. Potential donors may wish to discuss the tax consequences of any donation of shares with their accountants or financial advisers.