With strong equity and real estate performance in recent years, some donors are turning to appreciated assets—stocks, real estate, and other investments that have grown in value—as a way to maximize both their philanthropic impact and their tax benefits. With new tax rules now in effect (as of 2026), it’s more important than ever to understand how this powerful giving strategy works and how to navigate the updated landscape.
What Are Appreciated Assets and Why Do They Matter?
Appreciated assets are investments that have increased in value since you acquired them. Think of shares of stock you bought years ago or a piece of real estate that’s doubled in value. When you donate these assets directly to a qualified charity, you can potentially unlock two major benefits.
One potential benefit is avoiding capital gains tax. If you sold the asset yourself, you would owe tax on the gain. But by donating it, you skip the capital gains tax and the charity receives the full market value of the asset on the date of the gift.
Another benefit is a possible charitable deduction for the full fair market value. If you have held the asset for more than a year and itemize your deductions, you may be able to deduct its current value, not just what you paid for it. It may be a good idea to speak with your tax preparer to confirm that a charitable deduction is available based on your tax picture.
Bottom line: You can give more to charity while keeping more of your own money. It’s a win-win.
How the Rules Work in 2026 and Beyond
The tax environment for charitable giving has shifted. Here’s what donors need to know under the current rules:
- Deduction floor introduced: Itemizers must now give more than 0.5% of their adjusted gross income (AGI) before any charitable deductions apply.
- High earners will see a cap on itemized deductions at 35%, rather than the top marginal rate of 37%, effectively reducing the value of eligible deductions by 2%.
- Appreciated assets are excluded from the new universal charitable deduction for non-itemizers ($1,000 for individuals, $2,000 for joint filers).
While the rules are more restrictive than in prior years, appreciated asset giving remains one of the most tax-efficient ways to support charitable causes, especially for itemizers and those with highly appreciated investments.
Ways to Give Appreciated Assets
Depending on your goals, there are several vehicles that could make it easy to donate appreciated assets:
Donor-Advised Funds (DAFs)
These accounts accept a wide range of assets, including publicly traded stocks, mutual funds, and even complex holdings like private business interests, and allow you to make a tax-deductible gift now, then distribute grants to charities over time. You do not need to decide which qualified 501(c)(3) public charities to support right away. DAFs are ideal for strategic donors who want flexibility on where and when to donate and long-term planning.
Private Foundations
Private foundations give you full control over how your donations are invested and distributed. They can accept complex assets like private stock or real estate, and you decide which causes to support and when. However, they require more paperwork, legal setup, administrative costs and public reporting than other giving options. They’re best for donors who want to manage their giving closely and build a long-term legacy.
Direct Gifts to Charities
Some nonprofits can accept donations of stock or other non-cash assets directly. This is often the simplest way to give, especially if you already know which organization you want to support. You receive similar tax benefits as other methods, and the charity receives the full value of the asset.
However, not all charities are set up to handle these types of gifts. You may need to work with their finance or development team to arrange the transfer, and the process can take longer than a typical cash donation. In some cases, the charity might sell the asset immediately, which could affect timing or valuation.
Final Tips and Thoughts
Appreciated asset giving is one of the most tax-efficient ways to support the causes you care about. While the deduction rules have changed, the core benefits—avoiding capital gains and maximizing charitable impact—remain strong. Because donating complex assets like stock or real estate involves specific steps, or if you are planning to donate over several years, it’s wise to consult your financial advisor to help structure your gift properly and help ensure full compliance.
We can help make your giving strategy work for you. Reach out today and let’s start planning together.
