Asha for Education

Stock Donations

Brokerage Account Information

1. When is the donation complete for tax purposes?
   The date a gift is complete for tax purposes possibly determines not only the amount of the donor’s charitable contribution but also the year in which the gift is deemed made. If the donor instructs his or her own agent to have the stock transferred on the books of the issuing corporation to the ownership of the donee organization, the gift is not complete until the transfer takes place—which may be few business days later.
2. How is the donation amount calculated?  Fair market value: For purposes of determining the amount of the donor’s charitable gift, the fair market value of publicly traded securities is generally the average of its high and low trading prices on the date of the transfer into the donee organization’s account (see above for determining date of transfer).