Stock options as charitable gifts

Non-Qualified Stock Options (NQSOs) are transferrable to a charity in theory, but many option plans will not allow such a transfer, and, even if they do, donors rarely decide to contribute NQSOs because of the way they are taxed.
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• 4 reasons to donate stock to charity
• Practical Charitable Planning for Employee Stock Options | Planned Giving Design Center
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Compared with donating cash, or selling your appreciated securities and contributing the after-tax proceeds, you may be able to automatically increase your gift and your tax deduction. How does it work? The same benefits apply.

It represents the basic dollar amount that, when compared to the price at which you sell your shares, tells you how much of a capital gain or loss you have realized. This does not take into account state or local taxes, if any. Depending on the nonprofit organizations you choose to support, your gift could be transformed. Here is an example:.

A new IT system to keep track of the animals' medical records, monitor inventory of supplies and reach volunteers electronically. At first, they considered selling the stock and donating the proceeds to the group, because that seemed like the easiest option. Although they had established a private foundation in the past and also considered that option, their advisor pointed out some of the advantages of using a donor-advised fund to make the donation instead: the higher tax deduction, for starters.

• Charitable Planning for Employee Stock Options and Optioned Stock;
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• Securities as a Charitable Gift Option;
• Gift Examples?
• Advantages of Gifting Securities.
• employee stock options rules.
• 4 Reasons to Donate Stock | Fidelity Charitable!

Their advisor noted that the tax deduction for giving their stock to the private foundation would be limited to 20 percent of their adjusted gross income, while for a public charity with a donor-advised program, the deduction limit was 30 percent—a significant difference. Have a Fidelity Investments brokerage account?

The Canada Revenue Agency does not apply capital gains tax on donations of appreciated publicly traded securities. You can benefit tremendously from this added incentive to reduce the real cost of your charitable giving or increase the amount of your gifts without increasing the cost. The donation is generally transacted by a simple electronic transfer of shares to the charity by your professional advisor but can include gifts of paper share certificates if applicable.

If paper share certificates are to be donated, please contact us first to arrange for receipt.

If you leave securities to Ivey through your Will, your estate will receive the same tax benefits. Gifts made through your Will can be claimed up to percent of your net annual income in the year of death and the year preceding.

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Gifts through employee stock options The capital gains tax advantage also applies to donations of publicly traded shares acquired through employee stock options. Making your Gift to Ivey Any gift planning should be done in consultation with your financial or tax advisor. Donate Now. Connect with us: Facebook Twitter LinkedIn.