More Information About Gifts of Securities
Giving securities and other assets that have appreciated in value since you have owned them can be one of the most tax-efficient ways to make charitable gifts.
When you donate securities you have owned for more than a year that are worth more than you paid for them, your charitable deduction is normally based on the full value of the securities and capital gains tax is generally not due on the increase in value. Because charitable organizations are exempt from income taxes, there is also no capital gains tax paid when the asset is sold. For that reason, the capital gains tax you would have paid had you sold the securities instead of giving them is eliminated and the entire value of the securities is available for charitable purposes.