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 set to take effect in 2026, now is the time to understand how this powerful giving strategy works and why 2025 may be the right time to act.
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.
Tax law changes set to take effect in 2026 make 2025 a pivotal year for charitable giving — especially for donors holding appreciated assets or planning multi-year contributions. Here’s what you need to know:
Planning Tip: If you intend to give over multiple years, consider “bundling” future donations into a single, larger gift in 2025. This strategy could allow you to take full advantage of current deduction limits before they tighten in 2026. Donor-advised funds (DAFs) are a useful tool for this approach, enabling you to claim the deduction now while distributing grants from the DAF over time.
New rules will reduce the value and accessibility of charitable deductions — particularly for itemizers:
2025 offers a more generous environment for appreciated asset giving than 2026, when deductions become harder to claim and less valuable for many donors. If you hold appreciated assets and plan to give, 2025 may be the most tax-efficient year to act.
Depending on your goals, there are several vehicles that could make it easy to donate appreciated assets:
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 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.
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.
Appreciated asset giving is one of the most tax-efficient ways to support the causes you care about. And with new rules taking effect in 2026, 2025 may be the right time to make a bigger impact for both your favorite charities and your bottom line. By acting before year-end, you can lock in higher deduction limits and avoid the new 0.5% AGI floor that begins in 2026. If you’re planning to give over several years, consider bundling those future donations into one larger gift now to maximize your tax benefit. And because donating complex assets like stock or real estate involves specific steps, it’s wise to consult your financial advisor to help structure your gift properly and ensure full compliance.
We can help make your giving strategy work for you. Reach out today and let’s start planning together.
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