Are there tax benefits when I donate mutual funds to charity?

Yes! When you donate charitable mutual funds, you may be eligible for certain tax deductibles or savings. If you donate non-cash assets like mutual funds to charity, you often won't need to pay capital gains tax. The charity you give to, deduction limits, and other factors impact whether you get a tax deduction and, if you are eligible, how much you receive. Because of this, it can be useful to understand exactly how your donation impacts your taxes. A professional like an accountant or financial advisor can help you with your tax return or overall financial plan, which may be helpful if you aren’t sure about the tax implications of your gift.

How can I set up charitable giving through my brokerage account?

When you’re making a transfer of mutual fund shares, you’ll need your account number and may need some additional broker information. There are several ways you can set up the transfer, including an issue certificate or a signed transfer and ship letter. If you’re transferring your entire brokerage account for charitable donations, you’ll need to use a transfer initiation form (TIF) following Financial Industry Regulatory Authority (FINRA) guidelines .

How does donating to a mutual fund differ from cash donations?

When you make a cash gift, the value of your donation stays the same over time. However, if you donate stocks, mutual fund shares, or another type of investment to your favorite charity, the value of your gift may increase. This is because investments held for a year or longer have the potential to earn long-term capital gains — interest over time. So, if you donate your investment to a nonprofit and the nonprofit waits to sell the investment, the value of your gift may be higher than the original value of your donated investment.

Donating mutual funds to charity

If you have a mutual fund and are looking to donate the proceeds to a charity, like St. Jude, you may qualify to receive a charitable tax deduction.

St. Jude patient Kaleb

What is a mutual fund?

A mutual fund is an investment vehicle that pools money from multiple investors. The money is invested in securities — often a combination of bonds, stocks and other assets. A professional advisor typically manages a mutual fund, and individuals can buy shares of the mutual fund.

St. Jude patient Logan and her mom

Can you donate mutual funds to charity?

Yes! There are several ways you can give a mutual fund to a charitable organization as a donation. You can give mutual fund shares to charity in your estate plan, redeem your mutual fund shares and donate the cash, or transfer your mutual fund shares to St. Jude.

These various donation methods may offer various benefits:

You may be eligible for tax benefits when you donate a mutual fund or the cash from a mutual fund you sell.
There are several ways you can go about giving through a mutual fund, so you can choose what works best for you and your philanthropy goals.
Contact giftplanning@alsac.stjude.org to let us know that you are initiating a transfer of your mutual fund shares so we can guide you or answer any questions.

ALSAC/St. Jude Children’s Research Hospital does not provide tax, legal or accounting advice. This material is prepared and made available to you for informational purposes only and is not intended to provide or be relied upon for tax, legal or accounting advice. You should always consult a tax professional to determine your particular tax benefits that may result from any particular type of gift to charity.

How to donate mutual funds to St. Jude

Make St. Jude your beneficiary

Name St. Jude Children's Research Hospital as the “payable on death” beneficiary of a mutual fund.

Close your mutual funds account

You can close your mutual fund account or redeem your mutual fund shares, then donate the proceeds to St. Jude.

Transfer your mutual fund account

Transfer the ownership of the mutual fund to St. Jude so that your donation includes appreciated securities. By transferring the mutual fund shares, you may be eligible for tax benefits. Find our transfer form here.

St. Jude patient Ashtyn poses for a studio portrait — St. Jude patient **Ashtyn**

Please use the following legal name and tax identification:

ALSAC/St. Jude Children's Research Hospital
501 St. Jude Place
Memphis, TN 38105

Tax ID Number:
62-0646012

We are a tax-exempt, charitable institution listed in the Federal Internal Revenue Service Publication #78, "Cumulative List of Organizations," revised IRS Code 501(c)(3).

View the IRS Determination Letter.

Donating mutual funds to charity:
FAQs

Yes! When you donate charitable mutual funds, you may be eligible for certain tax deductibles or savings. If you donate non-cash assets like mutual funds to charity, you may not need to pay capital gains tax and may be eligible for an income tax deduction.

The charity you give to, deduction limits, and other factors impact whether you get a tax deduction and, if you are eligible, how much you receive. Because of this, it can be useful to understand exactly how your donation impacts your taxes.

A professional like an accountant or financial advisor can help you with your tax return or overall financial plan, which may be helpful if you are unsure about the tax implications of your gift.
When you’re making a transfer of mutual fund shares, you’ll need your account number and may need some additional broker information. There are several ways you can set up the transfer, including an issue certificate or a signed transfer and ship letter.

If you’re transferring your entire brokerage account for charitable donations, you’ll need to use a transfer initiation form (TIF) following Financial Industry Regulatory Authority (FINRA) guidelines.
When you make a cash gift, the value of your donation stays the same over time. However, if you donate stocks, mutual fund shares or another type of investment to your favorite charity, the value of your gift may increase.

This is because investments held for a year or longer have the potential to earn long-term capital gains — interest over time. So, if you donate your investment to a nonprofit and the nonprofit waits to sell the investment, the value of your gift may be higher than the original value of your donated investment.

Why donate to St. Jude?

Families never receive a bill from St. Jude for treatment, travel, housing or food — so they can focus on helping their child live.

When St. Jude opened in 1962, childhood cancer was considered largely incurable. Since then, St. Jude has helped push the overall survival rate from 20% to more than 80%, and we won't stop until no child dies from cancer.

Every child deserves a chance to live their best life and celebrate every moment. When you support St. Jude, you can help make cures possible for kids with cancer. Together, we can save more lives.

Have you left St. Jude in your will or estate plan?

As an acknowledgment of your generosity when you give a gift to St. Jude through your will or estate plan, you become a member of the Danny Thomas – St. Jude Society, and we recognize your commitment to the mission of St. Jude in a variety of ways.

Learn How We Honor Your Generosity Explore More Planned Giving Options