Donating IPO Stock | Schwab Charitable – Strategic Giving Simplified

Donating IPO Stock

Gifting IPO stock directly to a charitable account may provide significant tax savings for those who wish to donate this type of appreciated security, subject to timing and process considerations.

Advantages of donating IPO stock may include:

Avoidance of long-term capital gains tax
Charitable income tax deduction
Greater impact, as a higher amount is donated to charity

These advantages could be most favorable for executives, insiders, and early investors in companies going public who have highly appreciated stock subject to long-term capital gains.

Our IPOs: Charitable Tax Planning Opportunity fact sheet includes more detail on the advantages of gifting IPO stock directly to charity rather than selling the stock first and then donating the cash proceeds to charity.

Individual circumstances may vary, and those interested in donating IPO stock to charity should consult with a tax advisor about their particular situation.