OVERFLOW FAQ’s

Overflow created a digital solution to donate non-cash assets, enabling donors to give in the most tax efficient way. Donors can experience the ease of giving via stock in less than 5 minutes from their mobile device. Overflow also provides givers access to a private Donor Portal which gives visibility into donor gift history, transaction statuses and the ability to update connected financial accounts.

Access the Overflow platform via our giving page and click “Stock.” You will then be taken to the Overflow platform where you can follow the steps to complete the donation.

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, City Reach will send you an IRS-compliant acknowledgement letter that you can use to itemize your charitable donation on your taxes.

Currently, the Overflow platform can facilitate donations from DTC-enables brokerages such as Charles Schwab, Fidelity, Vanguard, E-Trade, and Wells Fargo.

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 20-37% in long-term capital gains taxes.

Currently, the Overflow platform can facilitate the donation of publicly-traded stock. This includes common stock, employee stock options, restricted stock units, and employee stock purchase plans. Overflow does not currently facilitate donations of mutual funds or fractional shares.

• Donating appreciated stock that you’ve held for over a year allows you to deduct the full fair market value from your taxes and protect your realized gains from being subjected to long-term capital gain tax, which can be up to 20% depending on your tax bracket.

• If you donate appreciated stocked you’ve held for less than a year, you can avoid up to 37% in short-term capital gains taxes by donating that stock. You also can deduct the cost basis of the stock as a charitable gift.

• Nonprofits are exempt from capital gains taxes, so your stock donation allows the nonprofit to utilize the full amount of the donated funds.

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 the nonprofit. This is for the assets you’ve held for more than a year. The date the stock was received by the nonprofit can be found in the acknowledgement letter you receive from the nonprofit. Include this letter in your tax return.