Donating Appreciated Securities is a one of the best ways to Save Taxes and Support Jewish Life at Chapman University.
The advantage to YOU of donating stock to Chabad:
When you donate a stock that has gained in value to Chabad, you do not have to pay capital gains tax and you can itemize a tax deduction for the entire amount of the stock.
| Options | Sell Stock and Donate Proceeds | Donate Stock Directly to Chabad |
| Market Value of Stock | $60,000 | $60,000 |
| Original Investment | $10,000 | $10,000 |
| Capital Gains Tax | $10,000 | $0 |
| Total Donation | $50,000 | $60,000 |
For example, say you bought 1000 shares of a stock at $10 a share a couple of decades ago. Now that stock is worth $60 a share. What was worth $10,000 when you bought it is now worth $60,000. Normally, if you sell the stock, you have to pay long-term capital gains taxes on the $50,000 that you made. If you donate the stock to Chabad, however, you are exempt from the capital gains tax.
You can also itemize the entire $60,000 on your taxes. Chabad can choose to sell the shares immediately, for $60,000, without paying taxes (due to its status), or it can hang on to the shares in the hopes that it will yield more down the road.
The following instructions will help you facilitate a gift of stock or securities. (Note: To receive the full tax benefit, stocks must be transferred to Chabad at Chapman University before they are sold):
Notification of Donor Intent
For the purposes of proper acknowledgment and auditing, either the transferring broker or you must provide the following information:
- Your name and complete address
- The number of shares and name of stock or securities transferred
To Donate Stocks Electronically
Please call 657-333-0989 or email our office for account number and DTC transfer number.