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…
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Avoid capital gains tax
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What is a capital gain? → The profit you make when selling your stock.
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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.
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Receive a higher tax deduction
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​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).
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This results in you saving some more money and giving more to the charity than a traditional cash donation.
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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.
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Check out Fidelity Charitable for more financial tips!