We are pleased to announce that as of 2019, we are accepting stock donations! Donating the gift of stock is a wise decision that allows you, the donor, to avoid capital gains tax. Additionally, gifting Embrace Relief a larger donation allows you to deduct a larger amount when you file taxes.
Donors looking to gift securities to Embrace Relief can take advantage of the full benefits of gifting stock if they have held stock long term, the stock has appreciated over time, and they itemize when filing taxes. You may be able to deduct up to 30% of your adjusted gross income.
|Sell $10,000 in Securities and Donate Cash Proceeds||Donate $10,000 Cash||Donate $10,000 in Securities|
|Federal Capital Gains Tax Paid||$1,050||$0||$0|
|State Capital Gains Tax Paid||$350||$0||$0|
|Total Tax Paid||$1,400||$0||$0|
Typically, a donor who wants to donate the cash value of a stock would sell shares of their stock, pay capital gains tax, then donate the remaining cash from the stock to our organization. However, the tax code allows individuals who donate appreciated stock that has been held longer than a year’s time to avoid capital gains tax when they donate to Section 501(c)(3) charitable organizations, such as Embrace Relief.
With the option to donate stock directly, a donor would simply transfer the stock into our name and be able to deduct the fair market value of the stock on the date of transfer as a charitable donation when filing their taxes. We would sell the stock upon arrival and use the cash from the sale to fund our global humanitarian projects without paying capital gains tax either. In this case, Embrace Relief is gifted the full cash value of the donated stock as opposed to the remaining value after the capital gains tax.
We have developed a stock donation policy at Embrace Relief for donors to have confidence in our handling of their generous gifts. The key components of our policy are as follows:
Stock donations will
- be accepted in electronic and certificate forms.
- be liquidated upon arrival for immediate access to fund our programs.
- be in publicly traded stock for easy liquidation.
- be considered a general donation for Embrace Relief to use in funding whichever program needs it most unless specified by donor.
- be monitored by Embrace Relief to ensure the account and funds are used appropriately.
There is no minimum amount or maximum limit for stock donations.
For their own records, donors will receive a receipt from Embrace Relief confirming the donation and what program it has funded.
We encourage those who are thinking of donating stock to reach out to their financial advisors.
Thank you for supporting our global humanitarian mission! The donation process is now easier and more beneficial for you.
A stock donation replaces the donation of cash accrued from a stock sale with the transfer of the stock shares themselves from you to us. This donation relieves you of paying capital gains taxes, thus increasing your gift and the amount you can deduct when filing your taxes. When receiving a stock donation, we sell the stock to gain the full cash value of your gift and use it to help one of our many humanitarian projects. Your gift can help provide children with the basics for survival, returning sight to those affected by severe cataracts, or help educate marginalized populations like women. Please review our Stock Donation Policy for more information. Below are steps for donating stock to Embrace Relief.
Step 1: Initiate Stock Transfer
Please contact your broker to inform him or her that you would like to gift stock shares to our organization and ask them for the appropriate forms to fill out. We accept both stock in certificate and electronic form. If you are asked to draft a letter to your broker, you may use our Sample letter here.
Step 2: Send Us the Securities
Please send the Certificate, Stock of Power Form, and Stock Waiver Form to us through separate certified mail packages at the following address:
Embrace Relief Foundation
18 Passaic Ave #1
Fairfield, NJ, United States 07004
Step 3- Notify Embrace Relief of Your Donation
It is essential that you fill this out so that we are aware that the donation comes from you and can send you a receipt for your records. This is the only indication that the donation comes from you as your information will not be shared with us upon transfer.
For any questions, please contact Jonathan Fugger at +1 201 528-3181 or [email protected].