When you're deciding how and what to contribute, be sure to consider all the options. Yes, you can always give cash, but making non-cash contributions may reduce your taxes, increase your charitable contributions, and be a smarter way to give.
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How can I have more to give to charity?
Donate appreciated assets to your Schwab Charitable™ account so that you can give more to your favorite charities while also paying less in taxes.
Let's say you own stock with a current value of $55,000, which you purchased for $5,000. Over the years, the stock has accrued $50,000 in long-term capital gains.†
With a direct donation to a Schwab Charitable donor-advised fund account, your income taxes are reduced by an additional $3,700 and the charity receives $10,000 more:
Hypothetical example
Hypothetical example, (assuming investment has been held for more than a year)
- Sell stock and donate net proceeds (cash) to charity
- Donate stock to Schwab Charitable donor-advised fund account
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Current fair market value of securities
Sell stock and donate net proceeds (cash) to charity
1,000 shares@ $55 per share* =$55,000Donate stock to Schwab Charitable donor-advised fund account
1,000 shares@ $55 per share* =$55,000-
Capital gains tax paid† (23.8%)Assumes a cost basis of $5,000 and long-term capital gains tax of $50,000
Sell stock and donate net proceeds (cash) to charity
($11,900)Donate stock to Schwab Charitable donor-advised fund account
$--
Charitable contribution/deduction‡
Sell stock and donate net proceeds (cash) to charity
$43,100Donate stock to Schwab Charitable donor-advised fund account
$55,000-
Value of charitable deduction, for those who itemize§Assumes donor is in the 37% federal income tax bracket
Sell stock and donate net proceeds (cash) to charity
$15,947Donate stock to Schwab Charitable donor-advised fund account
$20,350-
Total donor tax savings
(value of deduction less capital gains tax paid)Sell stock and donate net proceeds (cash) to charity
$4,047Donate stock to Schwab Charitable donor-advised fund account
$20,350
Table disclosure
- Read important disclosures
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*This value is hypothetical, for illustrative purposes only, and does not account for possible valuation discounts due to restrictions on the shares, if any. It should not be used in connection with considering whether to buy, sell, or hold appreciated securities.
†Assumes cost basis of $5,000, that the investment has been held for more than a year and that all realized gains are subject to the 20% federal long-term capital gains tax rate. Does not take into account any state or local taxes, or potential Medicare net investment income surtax.
‡Assumes no restrictions on the sale of the contributed shares. If there are restrictions, the value of the deduction, for those who itemize, will be reduced. Certain federal income tax deductions, including the charitable contribution, are available only to taxpayers who itemize deductions, for taxpayers with adjusted gross income (AGI) above certain levels. In addition, deductions for charitable contributions may be limited based on the type of property donated, the type of charity, and the donor’s AGI. Charitable contributions to public charities (including donor-advised funds) of capital gain property held for more than one year are usually deductible at fair market values. Deductions for capital gain property held for one year or less are usually limited to cost basis.
§Assumes donor is subject to the 37% federal tax. Does not take into account state or local taxes. Certain federal income tax deductions, including the charitable contribution, are available only to taxpayers who itemize deductions, for taxpayers with adjusted gross income (AGI) above certain levels. In addition, deductions for charitable contributions may be limited based on the type of property donated, the type of charity, and the donor’s AGI.
Reduce taxes when it matters
If you're about to change jobs, face a large tax bill, sell an appreciated investment, receive an inheritance, or retire, it might make sense for you to donate your non-cash assets to a charity via a Schwab Charitable account. You can:
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Reduce capital gains, estate, and income tax -
Increase the amount you can give to charity -
Consolidate recordkeeping and minimize cost
Learn more about making non-cash contributions
Donating appreciated assets instead of cash can be a tax-smart way to give to charity. Read this overview to learn more
Interested in a specific type of non-cash asset?
Select from any of the choices below to see more specific guidelines.
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Publicly traded securities -
IPO stock -
Restricted stock -
Privately held business interests -
Real estate -
Private equity fund interests -
Fine art and collectibles -
Equity compensation awards
