Stock or Cash Donations? HCR Wealth Advisors Are Here to Help

When market fluctuations take place, HCR Wealth Advisors is here to help. HCR Wealth Advisors is also known for assisting clients with their investment strategies and the holiday season is a time for open discussion. For example, clients may not know whether it is in their best interests to donate cash or stock when they are providing charitable gifts.


Making an informed decision has never been easier, thanks to the assistance that the experienced wealth management professionals at HCR Wealth Advisors have to offer. Before making a final decision on this matter, these are the points of consideration that matter most:

Tax Deductions

Itemizing deductions is key for any taxpayer that is looking to get over the hurdles that are associated with this decision. Tax laws have changed, and HCR Wealth Advisors can assist clients who are unaware of the recent alterations. Be sure to remember that these donations are limited to 30 percent of the donor’s gross adjusted income.

Keeping a Solid Portfolio

Stock appreciates and when the donor waits for the proper level of appreciation, they can remove tax liabilities from the portfolio. Federal and state taxes are levied when the holder of the portfolio chooses to sell their stock and make a cash donation with the proceeds.

Utilizing Capital Wisely

Smart utilization of capital is key in these instances. Donating stock and replacing the lost stock with a cash deposit is in the best interests of any holiday donor that is looking to utilize their cash more wisely. Different investments can also be purchased that will maintain the portfolio holder’s asset allocations.

Offering a Larger Donation

The holiday season is all about giving and those who are looking to offer the largest donation possible will need to make certain considerations. Donating stock straight to charity without liquidating it first is the way to go. Selling stock and donating the cash will lead to larger tax liabilities, decreasing the size of the donation that the client is able to provide.

This article is provided for informational purposes only and should not be interpreted as investment advice.