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Donating Stock to Hacker Dojo
Ways to Give
- Donate Online
- Donate a Picture
- Join a Donor Circle
- Honor a Loved One
- Be a Business Partner
- Run a Fundraiser!
Donating stock is an extremely fiscally effective way to donate to the Hacker Dojo. If you have held the stock for over a year, it will be exempt from capital gains tax.
An Example Case
Let's look at how this might work. Let's say a donor buys some shares of stock at $4,000 and holds on to them for over a year. Now the stock is worth $10,000. The donor wants to donate it to Hacker Dojo. What are the financial implications of donating the stock to Hacker Dojo instead of selling it and giving the proceeds to Hacker Dojo?
Case Example Assumptions:
- Capital gains tax is at 15%
- No state or local taxes
- Income tax is at 28%
- Donor takes itemized deductions (instead of the default deduction amount)
|Selling then Donating||Donating Stock|
|Amount Donated to Hacker Dojo||$10,000 ||$10,000 |
|Capital Gains Tax Savings||-$900 |
|Savings from Federal Income Tax ||$-2800 ||$-2800 |
|Effective cost to donor ||$7200 ||$6300 |
You can see that for the Dojo, the outcome is the same: the Hacker Dojo receives $10,000. Because Hacker Dojo does not have the infrastructure to maintain a stock portfolio, we will sell any publicly traded stock right away. For the donor, however, in one scenario the donor must pay $900 in capital gains tax, and in the other, the donor does not. This is why it can sometimes be very advantageous to donate stock to a nonprofit.
We are still working out the infrastructure to receive stocks, so the process is manual for now. Email firstname.lastname@example.org