You may hold stocks with substantial appreciation. If you’re considering a major gift or end-of-year gift, a gift of public company stock to charity provides two major benefits.
If you have a large gain or substantial income, you may want to offset that gain or income with a charitable deduction through a gift of stock. Because you receive both the charitable deduction and avoid capital gains tax, there is a double benefit for your gift of stock.
Another reason for making a stock gift is that you may have a very substantial income that could cause you to pay a large income tax. Note that there is a limit to the amount that can be deducted in one year based on a percentage of your adjusted gross income.
Because most stock is held by the brokerage firm, the stock is transferred directly from the account at the brokerage firm to an account for the charity. For any gift more than $250, the charity will issue a receipt.