How to Claim a Charitable Donation of Stock (10 Steps)

Request a copy of the organization's letter from the IRS, stating its tax-exempt status as well as its status for receiving charitable contributions. This is necessary if you intend to claim a deduction based on your donation of stock or other securities to that organization.
Call the IRS toll-free at (877) 829-5500 to verify whether the organization is a charitable entity that can receive your donation of stock or other securities that you intend to claim.
Obtain and examine IRS Publication 78, available at IRS.gov (see Resources below). It lists eligible organizations that are qualified to receive any donations you intend to claim.



Give the IRS the proper name of the issuer for the stock that you are donating.
Indicate whether the stock you are donating represents securities that are commonly traded on the stock exchange or by other over-the-counter means.
Offer specific information on the type of securities you are donating.
Provide the date of your donation. This will vary and is dependent on whether you are signing the donated securities over or making an electronic transfer through your broker.



Indicate your intention to itemize your deductions on IRS Form 1040, under the section 'Tax and Credits.'
Use Schedule A to itemize your claim of a charitable donation of stock in the Gifts to Charity section.
Select Form 8283 to claim your deduction for a non-cash charitable contribution, as indicated on Schedule A.

How to Donate Stock to Charity

Call a certified pubic accountant or a tax professional to determine how the donation will affect your taxes. In general, it is better to donate stock that has appreciated in value rather than stock that has lost value.
Look up the name of the charity at the IRS website (See Resources) to ensure that they are a 503c certified organization or a religious organization, which are the only ones that you can obtain a tax deduction for. You can donate to unapproved charities, but you will receive no tax benefits.
Call the charitable organization that you want to donate to and ask them the name and account number for their brokerage account. Not all charities have brokerage accounts set up, in which case they must establish one or you cannot donate your stock to them.
Contact your brokerage account and provide them with the transfer information you obtained from the charitable organization. Tell the broker how much of the stock you wish to donate and the date you want it transferred on.
Print out a copy of the stock transfer transaction and place it in your files for tax purposes. In addition, ask the charity to provide you with a receipt as soon as it receives the funds.