If you are someone who typically donates money to charity and you have a taxable investing account with gains at Betterment, you should consider making share donations from your account rather than in cash. While both cash donations and share donations (held long term) have the same tax deduction, donating appreciated shares has an additional tax benefit: avoiding the capital gains tax on the sale of your investments. Whether you sell today or sell in the future, you’ll typically pay tax on those gains when you sell. Donating shares, and replacing the shares with an additional cash investment, results in a lower embedded tax liability, while keeping your investing goals on track.
Articles in this section
- How do I donate shares?
- Which charities can I donate to through Betterment?
- Can you donate to charity with shares from goals using any portfolio strategy?
- Can I donate shares from my Tax-Coordinated Portfolio?
- How long do I have to hold shares to be able to donate them?
- Why can’t I donate my short-term capital gains?
- Can I donate shares from my Betterment IRA or 401(k)?
- How do I request a new charity be added?
- I represent a Charity. How can we be included to accept donations from Betterment customers?
- How do we calculate the eligible balance for making a donation?