Why you should consider donating appreciated securities instead of cash

[Byron Valles]

Donating appreciated securities to a charitable organization can be a smart way to give, both for you and the charity. When you donate appreciated securities that you have held for more than one year, you can avoid paying capital gains tax on the appreciation. This means that you can give more to the charity without it costing you more out of pocket.

In addition, you can take a charitable deduction for the full market value of the securities on the date of the donation. This can reduce your taxable income and save you money on your taxes.

Here are some of the key benefits of donating appreciated securities to charity:

Maximize your charitable impact. By avoiding capital gains tax, you can give more to the charity without it costing you more out of pocket.

Reduce your taxable income. You can take a charitable deduction for the full market value of the securities on the date of the donation.

Simplify your tax return. Donating appreciated securities is a tax-efficient way to give. You don't have to track your basis in the securities or calculate any capital gains.

As always, please consult your tax professional for advice on your specific situation.