Gifts of Stocks, Bonds, Mutual Funds, and Other Securities

Securities are defined as public stocks, bonds, and mutual funds, and can also be given as a charitable gift. It’s a simple and effective way to donate.

Example:

Ahmed, who currently has an income of $1,000,000, owns a stock that he originally purchased for $10,000. That stock now has value of $250,000.

  • If Ahmed sells the stock, his taxable income for this year would be $1,250,000 subject to both State and Federal Tax.
  • If Ahmed instead donates the stock, then he will get a tax deduction for the $250,000, thereby reducing his taxable income to $750,000.

Through a Charitable Trust, the gift can return income to Ahmed, while still retaining the gift amount for IRUSA.

How giving a security works:
  • To begin, you will need to complete the IRUSA Waqf Stock Transfer Information Form
  • Upon approval, you must contact your bank or broker and notify them of your intention to transfer your securities to IRUSA Waqf
  • You must also provide us with your bank or broker information
  • Finally, you execute the transfer with your bank or broker and the security is transferred

Benefits:

  • By donating your stocks, bonds, mutual fund, or any other security, you will immediately get a Tax Deduction.
  • Moreover, you will avoid the costly capital gains tax on the appreciation of the security.