Why Donate Stocks?

He wants to make an impact beyond his day job and has been recently compelled by initiatives within his local church to do what he can to fight social injustice. He has recognized how fortunate he has been in his career, Apple being one of the best companies to work for, and wants to give back. Let's 👏🏻 Go 👏🏻 Alex 👏🏻 !

Alex could make a donation the standard way: donate $10,000 in cash to a nonprofit directly. Or he could do something else entirely. He could donate from his stock portfolio (thank you for Apple stock grants!) where he will benefit from significant tax savings.

How does this work? Let's compare two
options from Alex's stock portfolio.

Liquidate Then Donate

Donate Direct

Cost Basis of Stock

$5,000

Fair Market Value

$10,000

Capital Gains Tax %

37%

Capital Gains Tax

($1,850.00)

Total Donation

$8,150

$10,000

*Capital gains tax for an individual vary based on holding scenarios, but nonprofits are not subject to this tax

To summarize, donating stocks directly for Alex means:

—

A larger donation because capital gains are protected, which means Alex has a bigger impact with his donation.

—

A higher tax deduction because of the larger donation, which means more tax savings for Alex.

Win-Win!

In this example, $1,850 was the specific additional value here. For many nonprofits, this is a game changer.

New Story could use $1,850 to pay the rent for a family facing eviction during COVID-19.

StreetCode Academy could use $1,850 to buy a laptop with internet & coding courses for 3 Black & Latinx students who don't currently have access.

So why don't people donate this way? For those who are fortunate to work at companies like Apple and be compensated with stock they can donate from, it's currently too manual to do so.

With PayPal and Stripe, cash & credit card is just... easier.

Donors don't want to have to call or message their brokerage, fill out physical forms, fax in paperwork, and try to contact the nonprofit for their DTC information (What does DTC mean? Exactly). So anyone with stock can do this? Yes! Tens of billions in value is transacted each year through direct stock-based donations actually. But it's concentrated and limited to high net worth households with financial advisors who handle these transactions for them.

That changes now.

Give some of your stock through Overflow today in under a minute.

Who should use Overflow?

We are calling all tech employees with RSUs, business professionals with employee stocks, and the general public invested in the market i.e. ETFs to consider sharing your shares. The future that we will create is one with equity! We call it: Equity For The Inequitable.

Visit our homepage at Overflow to learn how you can be part of the movement today!