Donating Stock: How to Choose the Best Option
Last updated: September 17, 2026
Put your best donation forward.
You’re inspired to support your local nonprofit in launching a new program. As you review your stock portfolio, you find yourself unsure… Which stock should you donate to make the biggest impact while keeping taxes low? 🤔
Here are some simple tips to help you choose the best stock to donate:
📈 Give Your Gains
Choose stocks you’ve held for at least a year that have increased in value. By donating these long-term appreciated stocks, you can:
- 💰 Maximize your tax deduction: You can deduct the full market value.
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🚫 Avoid capital gains tax: This can save you up to 20% in long-term capital gains tax.
🧾 Itemize for Impact
While it might be tempting to take the standard deduction, itemizing allows you to fully benefit from your donation’s value. This way, you can recognize the complete impact of your generosity!
⏰ Timing Matters
Regardless of the type of stock, you can monitor the market price to estimate the fair market value before donating. This can help you plan your gift and get a sense of the potential tax deduction.
- 🏢 If you’re donating stock options you received through your employer, be sure to hold onto the exercised shares for at least a year. This way, your deduction is based on the fair market value at the time of donation, not just the exercise price.
💬 Need Help?
Overflow can help you identify the best stocks to donate by sorting them from most to least appreciated. This makes it easier for you to make a meaningful impact with your donation. 🙌🏽
🔗 IRS Resources for Noncash Donations
Learn more about tax-deductible contributions, valuations of contributions, etc.