Stocks and Mutual Funds

What is a stock?

A stock is a unit of ownership in a company. It is also known as equity.

What is a mutual fund?

A mutual fund is an investment fund managed between many investors that pools money together to purchase securities.

Main advantages of donating stocks and mutual funds:

Your donation can stretch further by directing your stocks or mutual funds to be donated to charity. When donating stock to a charity you…

 

  1. Avoid capital gains tax

    • What is a capital gain? → The profit you make when selling your stock.

    • When your stock appreciates in value, you make a capital gain and you have to pay a tax on it (called a “capital gains tax”). When you donate your stock to charity, you are exempt from having to pay a capital gains tax.

  2. Receive a higher tax deduction

    • ​When you file your taxes, you can deduct the charitable donation from your income. “When you donate stock to charity, you’ll generally take a tax deduction for the full fair market value” (Fidelity).

This results in you saving some more money and giving more to the charity than a traditional cash donation.

To obtain the financial information to direct your stocks or mutual funds to be donated to CASA for Children of DC, please contact our Executive Director Arika Adams at aadams@casadc.org.

Check out Fidelity Charitable for more financial tips!