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
- TurboTax is requesting cost basis for my donation I made through Charitable Giving. Where do I find that information?
- How do I report my charitable donation?
- Why should I consider donating shares to charity?
- How do I donate shares?
- When is the deadline for making a charitable contribution?
- How long do I have to hold shares to be able to donate them?
- Which charities can I donate to through Betterment?
- How do I get my receipt for my charitable donation?
- Why can't I donate to charity from Betterment’s mobile app?
- Why can’t I donate my short-term capital gains?