Should I donate appreciated stock instead of cash?
By Adam Kasick | Wealth Advisor | Updated September 2026
For charitably inclined investors, donating eligible appreciated securities can sometimes be more tax-efficient than selling the shares and donating cash. The right approach depends on the asset, holding period, charity, deduction rules and your broader giving plan.
Here's how I'd think about it.
Concentration is not automatically a mistake. It becomes a planning problem when we cannot explain why the position is still the right size, what risk it creates or what would happen to your goals if the asset fell substantially.
Why it can matter
A charitable gift can potentially accomplish two jobs at once: support a cause you care about and reduce a concentrated appreciated position.
Coordinate before selling
If charitable giving is already part of your plan, I want the strategy discussed before appreciated shares are sold. Once the gain is realized, some planning options may be gone.
Here's what I'd want to know about you.
- What percentage of your financial life depends on this asset?
- What is your cost basis and where is the asset held?
- When will you need money from the portfolio?
- What would a major decline change for you?
- What taxes or other constraints would selling create?
I don't want a pie chart to make the decision. I want you to see the tradeoffs clearly enough to make the concentration intentional.
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