Should you donate stock to charity?

If your total tax deductions for the year are lower than these amounts, your tax bill won’t benefit from donating stock to charity. Elsensohn recommends bunching deductions, or making all of your charitable donations for the next few years in one year, so you can itemize an amount that’s higher than the standard deduction.

Should you donate appreciated securities to charity?

Make a larger impact by donating long-term appreciated securities, including stock, bonds, and mutual funds, directly to charity. Compared with donating cash, or selling your appreciated securities and contributing the after-tax proceeds, you may potentially increase your gift and tax donation.

How do I reduce tax if I donate stock to charity?

Elsensohn recommends bunching deductions, or making all of your charitable donations for the next few years in one year, so you can itemize an amount that’s higher than the standard deduction. “This accomplishes two things—you’re increasing your itemized deduction and you avoid the tax because you’re donating the stock to charity,” says Elsensohn.