How does donating appreciated stock & mutual fund shares work?

Donating appreciated stock and mutual fund shares offers a highly effective way for higher-income investors to not only reduce their taxes, but to give more to the causes and communities that are important to them. Let’s take a closer look at how it works, starting with the tax benefits.

Is donating appreciated stock a good idea?

It seems clear that donating appreciated stock is a winning proposition for both donors and nonprofit organizations. But more importantly, by encouraging and increasing charitable contributions, it offers the promise of better serving the people that rely on the philanthropic community.

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.