Overflow is a digital solution for donating non-cash assets, enabling donors
to give in a tax-efficient way. Donors can experience the ease of giving via
stock or crypto in less than five minutes from their mobile device. Overflow
also provides givers access to a private Donor Portal which enables visibility
into transaction history, transaction statuses, and the ability to update
connected financial accounts.
Overflow’s Information Security Program is SOC 2 compliant, a widely
respected information security auditing procedure. Overflow does not have
access to nor stores any brokerage account usernames or passwords. They
use Yodlee, a third-party provider, that handles the brokerage login process.
Over 600 companies including PayPal, Mint, and Amazon use Yodlee to
connect their clients’ accounts.
Donating appreciated stock that you’ve held for over a year could allow you
to save up to 20% in capital gains taxes and potentially up to 37% in federal
income taxes on the charitable donation value of your gift based on your tax
bracket when itemizing deductions.
To understand the full tax benefits of giving appreciated stock, including
potential state tax savings, please consult with your tax professional for
information about your personal tax implications.
You can give any publicly traded stock through Overflow. By donating assets
that have appreciated in value for more than one year, you are more likely to
maximize the potential tax benefits.
Overflow can process all whole shares of publicly traded stock, including 401Ks
and IRAs. However, because donors often incur penalties for withdrawing these
assets before a certain date, we highly recommend consulting your tax
professional before donating these types of assets. Donating 401Ks or IRA
could result in major tax penalties or even fewer tax benefits than donating
If you received company-distributed stock as an employee and the trading
window is not open, your brokerage will likely reject the transfer request. We
highly advise you ask your company for the trading windows and give during
those time periods, which typically are open quarterly for 3 to 4 weeks at a time.
Overflow currently supports over 10 brokerages via their self-guided platform
including the most popular brokers such as Charles Schwab, Fidelity, and
E*Trade. If Overflow doesn’t have a direct connection to your brokerage
account, your gift can still be fulfilled through their off-platform concierge
service. If you are in Overflow’s donor experience and your brokerage
account is not one of the 10+ currently supported with a direct connection,
you’ll be taken to a form to contact Overflow’s transaction operations team.
You can also choose to opt into Overflow’s fully-guided concierge service
by emailing [email protected]
File Form 8283 for the 1040 tax return. To calculate how much to deduct from your taxes, the general rule of thumb is to deduct the fair market value which is the average of the high/low price of the stock on the day it was received by Word of Faith. This is for assets you’ve held for more than a year. The date the stock was received by Word of Faith can be found in the acknowledgment letter you receive from Word of Faith. Include this letter in your tax return.
Stock is one of the most tax-advantageous ways to give. By donating stock directly instead of liquidating the asset and donating the cash, you can save up to 20% in long-term capital gains taxes.
Immediately after submitting your donation, you will receive an email confirmation of your gift. Stock transactions take 2-14 days to reach our account depending on the sending and receiving brokerages that are involved in the process. Once we receive your gift, Word of Faith will send you an IRS-compliant acknowledgment letter that you can use to itemize the charitable deduction on your taxes.