Introduction to Stock Donations Philanthropy takes many forms, and one of the most tax-efficient ways to give is through stock donations. Instead of writing a check, donors can transfer appreciated stocks directly to charitable organizations. This method not only benefits the donor but also provides substantial support to nonprofits to accept stock donations. Understanding the stock donation value can help donors make informed decisions while maximizing their contributions. Why Donate Stocks Instead of Cash? Donating stocks offers significant financial advantages. When you donate appreciated securities held for over a year, you avoid paying capital gains tax on the profit. Additionally, you can deduct the fair market value of the stock at the time of donation. This means both the donor and the nonprofit benefit—the donor receives a tax deduction, and the charity gets the full stock donation value without selling fees or tax liabilities. For ...