The fair market value at the time of transfer is considered as a charitable contribution and is tax deductible when itemizing deductions. There is a tax advantage to the donor when the securities are worth more than their cost basis, since there is no capital gains tax to be paid. Besides being beneficial to you regardless of the size of the gift, this is especially a good way to dispose of small numbers of shares that might be costly to sell through a stockbroker. During that time Rawhide has become well known for its unique vehicle donation program. Each year thousands of people donate their vehicles to help the boys.
Many donors find the fair market value of their vehicle exceeds the trade-in value.
Proceeds from the sale of donated cars, trucks, boats, RVs, and real estate have given hundreds of young men an opportunity to change their lives. Buildings and land make excellent gifts to charitable organizations. These can be outright gifts, for which the donor may be able to take a tax deduction for the current fair market value of the property. In the case of a personal residence, the gift might be made with the legal provision for lifetime residency of the donor and spouse. Thus, an ownership interest would be transferred to Rawhide, Inc., and there may be a current tax deduction for the donor.