Giving Process

Below is a summary of the likely tax implications of your equity grant to A Good Option*:

To donate equity today

For individual donors:

• If you wish to donate equity now, and are holding vested stock options, you likely will be advised to exercise (now) the number of options you wish to donate, and then hold the shares you receive in exchange for those options for at least one year – and then donate the shares to A Good Option. You would likely receive a charitable deduction in the amount of the fair market value of the shares you donate, calculated on the date of your donation.

For company donors:

• If the Company donates stock, it would receive a charitable deduction in the amount of the fair market value of the donated shares, calculated on the date of donation.

• If the Company donates options, it would receive a deduction when the options are exercised equal to the excess of the stock’s fair market value on the date of exercise over the exercise price.

To pledge equity today

For both individuals and companies:

• If you choose to pledge equity – rather than donate today – your donation will be deemed to occur, for tax purposes, at the time of the eventual donation, not at the time you pledge. This may enable you to maximize the value of your charitable deduction, assuming the value of your equity increases between the date of your pledge and the date of your eventual donation.  

*A Good Option, Inc. is not a legal or tax advisor and the information above is not tax or legal advice. Potential donors should consult their tax advisors to confirm the treatment of any potential donations to A Good Option, Inc.