Sign up to save your podcasts
Or
Share “Don’t Sell Stock to Donate” by Jeff Kaufman 🔸
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
“Don’t Sell Stock to Donate” by Jeff Kaufman 🔸
When you sell stock [1] you pay capital gains tax, but there's no tax
if you donate the stock directly. Under a bunch of assumptions,
someone donating $10k could likely increase their donations by ~$1k by
donating stock. This applies to all 501(c) organizations, such as
regular 501(c)3 non-profits, but also 501(c)4s such as advocacy
groups.
In the US, when something becomes more valuable and you sell it you
need to pay tax proportional to the gains. [2] This gets complicated
based on how much other income you have (which determines your tax
bracket for marginal income), how long you've held it (which
determines whether this is long-term vs short-term capital gains), and
where you live (many states and some municipalities add additional
tax). Some example cases:
A single person in Boston with other income of $100k who had
$10k in long-term capital gains would pay $2,000 (20%). This is 15%
in federal tax and 5% in MA tax.
A couple in SF with other income of $200k who had $10k in long-term
capital gains would pay $2,810 (28%). This is 15% in federal
tax, 3.8% for the NIIT surcharge, and [...]
---
First published:
December 30th, 2025
Source:
https://forum.effectivealtruism.org/posts/5LZYceEHLj2YbdkLf/don-t-sell-stock-to-donate
---
Narrated by TYPE III AUDIO.
View all episodes
By EA Forum TeamWhen you sell stock [1] you pay capital gains tax, but there's no tax
if you donate the stock directly. Under a bunch of assumptions,
someone donating $10k could likely increase their donations by ~$1k by
donating stock. This applies to all 501(c) organizations, such as
regular 501(c)3 non-profits, but also 501(c)4s such as advocacy
groups.
In the US, when something becomes more valuable and you sell it you
need to pay tax proportional to the gains. [2] This gets complicated
based on how much other income you have (which determines your tax
bracket for marginal income), how long you've held it (which
determines whether this is long-term vs short-term capital gains), and
where you live (many states and some municipalities add additional
tax). Some example cases:
A single person in Boston with other income of $100k who had
$10k in long-term capital gains would pay $2,000 (20%). This is 15%
in federal tax and 5% in MA tax.
A couple in SF with other income of $200k who had $10k in long-term
capital gains would pay $2,810 (28%). This is 15% in federal
tax, 3.8% for the NIIT surcharge, and [...]
---
First published:
December 30th, 2025
Source:
https://forum.effectivealtruism.org/posts/5LZYceEHLj2YbdkLf/don-t-sell-stock-to-donate
---
Narrated by TYPE III AUDIO.