Cash is the most common way to give, but many San Diego Foundation (SDF) donors also give appreciated stock: shares that have grown in value since they were bought. It can stretch your giving and tax benefits even further than a cash gift.
When you give stock directly to a donor-advised fund (DAF) or other SDF fund, you can claim a charitable deduction and avoid paying capital gains tax on the growth. That means more of the value goes to the causes you care about, compared with selling the stock first and giving the cash later.
Whether you have a few shares or a significant amount, you can give stock to a new or existing DAF at San Diego Foundation. When you do, you can:
- Claim a charitable deduction for the full fair market value of the stock
- Avoid capital gains tax on the growth in its value
- Recommend grants to the nonprofits and causes you care about over time, on your own schedule
4 Things to Know Before You Give
How long you’ve held the stock.
Stock you’ve held for more than one year generally qualifies for a deduction at its full fair market value. Shares held a year or less may qualify for a smaller deduction, so check with your tax advisor.
How much you can deduct.
You can deduct gifts of appreciated stock to your fund up to 30% of your adjusted gross income (AGI) in a year. If your gift is larger, you can carry the extra forward and deduct it over the next five years.
Your deduction.
To claim a charitable deduction, you need to itemize on your tax return. Your gift letter from SDF includes an estimated range of the stock’s fair market value, which you and your advisor can use to estimate your deduction.
New tax rules.
Starting in 2026, new federal rules add a 0.5% threshold for itemizers and limit the tax savings for donors in the top bracket to 35 cents per dollar. Giving stock can still help you avoid capital gains tax.
A Gift of Stock in Action
Wealth advisor Mark Petrie of Aspiriant, one of the nation’s leading independent wealth management firms, has helped successful San Diegans reach their long-term financial goals for years. One of his clients, David Engel, holds a DAF at San Diego Foundation.
During their annual planning review, Mark and David noticed that a few publicly traded stocks in David’s family trust had grown significantly in value.
Mark suggested giving those shares to David’s DAF. Instead of selling the stock and owing capital gains tax, David could put the full value of the shares toward his giving and claim a charitable deduction.
Once they agreed on which shares to give, Mark and David worked with SDF’s Donor Services team. The team shared instructions for the transfer, starting with an online gift form. David’s gift letter included an estimated range of the shares’ fair market value, which Mark used to calculate David’s tax deduction.
When the shares arrived in SDF’s brokerage account, our broker sold them. The proceeds went into David’s DAF, giving him new funds to recommend as grants to nonprofits strengthening our community.
How to Give Stock to Your Fund
Giving stock takes a few steps, and our Donor Services team is with you through each one.
- Talk with your advisor. Decide which shares to give and how many to give. Your tax advisor or wealth advisor can help you choose.
- Complete the online gift form. Use the form for domestic stock or foreign stock.
- Follow the transfer instructions. When you complete the form, transfer instructions will display and be automatically emailed to the address you provided.
- Keep your gift letter. It includes the high and low values for each donated stock, which you and your advisor can use to determine your deduction.
- Recommend your grants. Once our broker sells the shares, the proceeds go into your fund, and you can recommend grants to nonprofits whenever you are ready.
Giving mutual fund shares? Please don’t use an online form. Contact our Donor Services team at (619) 814-1332 or [email protected].
Plan ahead. Stock transfers can take time, so start early. Mutual fund shares must be received by November 23 and stock by noon on December 30 at SDF to ensure they are processed by December 31, the IRS deadline for yearly tax deduction eligibility.
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Frequently Asked Questions (FAQs) about Giving Stock
What are the 2026 year-end deadlines?
Mutual fund shares must be received by Monday, November 23. Stock must arrive at SDF’s brokerage accounts by noon on Wednesday, December 30.
Can I give mutual fund shares?
Yes. Please don’t use the online form. Contact our Donor Services team at (619) 814-1332 or [email protected].
Can I give stock held outside the United States?
Yes. Use our foreign stock gift form.
How much can I deduct?
You can generally deduct gifts of appreciated stock held longer than one year up to 30% of your adjusted gross income, and carry any excess forward for up to five years. Talk with your tax advisor about your situation.
Simplifying the Process
Giving stock can feel complicated, but you don’t have to figure it out alone. Our team has decades of experience working with donors and their advisors to find the right way to give, whether it’s cash, stock or other assets.
If you’re considering a gift of stock, we can connect with you and your advisor to help you reach your giving goals.
Connect with Our Giving Team View More Donor Resources
This information is general and not tax or legal advice. Please consult your tax advisor.
