Stocks & Donor Advised Funds

Maximize Your Impact by Donating Stock

Donating stock to Mt. Pleasant Animal Shelter is a powerful way to increase the value of your contribution while also maximizing your tax savings.

When you donate appreciated stock directly to us, you avoid paying capital gains taxes on the increased value of the stock. This means Mt. Pleasant Animal Shelter receives the full market value of your donation, and you can take the full amount as a tax deduction, subject to IRS limits.

  Option #1: Sell the stock and donate cash Option #2: Donate the stock to the charity
Current fair market value of stocks (1,000 shares x $100 per share) $100,000 $100,000
Option #1: Sell the stock and donate cash1 $100,000 (in cash) $100,000 (in stock)
Income-tax deduction from donation2 (0.37 x amount donated to charity) $37,000 $37,000
Capital gains tax owed $22,610 $0
Net tax savings from charitable donation $14,390 $37,000

Table adapted from Charles Schwab’s article, “Charitable Donation Basics: Making the Most of Your Giving.” For more details, visit Charles Schwab’s Charitable Giving page.

Disclosure

This hypothetical example is only for illustrative purposes.

1Assumes a cost basis of $5,000, that the investment has been held for more than a year, and that all realized gains are subject to a 20% long-term capital gains tax rate and the 3.8% net investment income tax. The analysis does not take into account any state or local taxes.

2Assumes donor is in the 37% federal income tax bracket and does not take into account any state or local taxes. Certain federal income tax deductions, including the charitable contribution, are available only to taxpayers who itemize deductions and may be subject to reduction for taxpayers with AGI above certain levels. In addition, deductions for charitable contributions may be limited based on the type of property donated, the type of charity, and the donor’s AGI. For example, deductions for contributions of appreciated property to public charities generally are limited to 30% of the donor’s AGI. Excess contributions may be carried forward for up to five years.

How to Donate Stock:

Step 1: Consult with your financial advisor, stockbroker, or legal professional to confirm this option is right for you.

Step 2: Contact your brokerage firm to initiate a stock transfer. They will provide specific instructions for the process.

Step 3: Contact Mt. Pleasant Animal Shelter by emailing JoAnn.Bartoli@njshelter.org or by calling 973-386-0590. She can provide you with our brokerage firm instructions. Please be sure to provide the information  requested below:

  • Your name and contact information.
  • Name of the stock.
  • Number of shares being transferred.
  • Expected transfer date.

Thank you for helping us save lives and find loving homes for animals in need!

Donor-Advised Funds (DAFs): A Smart Way to Give

A donor-advised fund (DAF) is a charitable investment account created exclusively to support the causes that matter most to you. By contributing cash, securities, or other assets to a DAF, you can receive an immediate tax deduction. Your contribution can then grow tax-free, allowing you to recommend grants to any eligible IRS-qualified public charity whenever you’re ready.


How a Donor-Advised Fund Works:

GIVE
Make a tax-deductible donation
Start by opening a Giving Account and donating cash, stocks, or other assets like private business interests, cryptocurrency, or private company stock. Your donation is eligible for an immediate tax deduction, giving you flexibility in your philanthropic planning.

GROW
Grow your donation, tax-free
While deciding which charities to support, your donation can be invested and grow tax-free, potentially increasing the amount available to help others.

GRANT
Support the charities you love, now or later
You recommend when and how to grant funds to your favorite charities—whether it’s your local food pantry, a shelter, a house of worship, or a global organization. Give at your own pace, now or over time, to make an impact on the causes you care about.


With a donor-advised fund, you can make a lasting difference for the animals at Mt. Pleasant Animal Shelter and other causes close to your heart.