A popular approach to charitable giving is the donation of appreciated securities. You
can enjoy significant tax benefits by contributing appreciated stock directly to
charity instead of making a cash contribution.
Suppose, for example, you want to contribute $10,000 to your alma mater. You have that
much in the bank; you also have $10,000 worth of stock that you purchased for $2,000
some years ago.
Whether you contribute the stock or the cash, the charity receives the same $10,000
and you get the same $10,000 deduction for making the contribution. However, directly
contributing the stock also lets you save the capital gains tax that would have been
due on the sale of the stock, so you come out ahead with this strategy.
