Donations in kind are donations of stock directly to Canines With a Cause. These donations are often made to reduce or eliminate the amount of tax that needs to be paid on appreciated assets. The donor that makes the donation will get receipts from their financial Institution indicating that the donation has been made. Canines With a Cause will send an Official Tax Statement directly to the donor once the donation has been received by CWAC’s financial institution. There may be significant tax advantages for doing this.

A donor may be able to avoid federal estate and income tax on the investments increase in value while still taking any charitable donation deduction. For example, he or she paid $10 per share for 100 shares of stock which increases to $100 a share. Donation of this stock to the CWAC is recorded as $10,000 donation. The tax effect is that the donor (a) avoids taxation on the $9,000 gain while still (b) likely qualifying for a charitable donation deduction for the full $10,000.