Donating Appreciated Investments
One of the most powerful — and often overlooked — ways to give is by donating appreciated investments. If you hold publicly traded stocks, mutual funds, or ETFs that have grown in value, donating them directly to a registered charity can provide a larger impact for the charity and greater tax savings for you.
This strategy is often more effective than donating cash, especially when you consider:
Eliminating capital gains tax
Receiving a full charitable tax receipt
Offsetting taxes on other income
Reducing a future tax liability
Integrating giving into a business sale or estate plan
When you donate qualifying securities in-kind — rather than selling them first and donating the cash — the capital gain is completely exempt from tax. You’ll also receive a donation receipt for the full market value of the investment on the date of transfer, which can be used to offset up to 75% of your net income (or even more in the year of death).
This makes donating appreciated securities especially attractive for high-income years, or when you’re realizing a large gain — such as from selling a business, exercising stock options, or drawing from a corporation. It’s also a smart way to rebalance your portfolio while supporting the causes you care about.
You can donate directly to a charity or through a donor advised fund, which allows for flexibility in timing and disbursement. This approach can also be incorporated into your estate plan, helping reduce taxes while creating a lasting legacy.
Whether you’re looking to reduce taxes, simplify your estate, or give more meaningfully, donating appreciated investments is a high-impact way to support the organizations you value — and keep more of your wealth working for good.
Come visit our resources on Charitable Giving for more information.
We can help you assess which securities make the most sense to donate, and build a plan that aligns with your financial and philanthropic goals.
