Additionally, gifting stock to charities could come with a tax deduction if you itemize your tax return (rather than take a standard deduction). You'll want to check with your tax advisor on any limitations and how much of a deduction you qualify for. Moreover, the charity may need to provide paperwork acknowledging the value. But because charities are tax-exempt, gifting stock (versus selling it yourself, paying the tax, and then giving cash) could maximize what you're able to contribute toward their cause.
Limitations of gifting stock
There's a limitation to consider when gifting stock. The IRS requires you to fill out a gift tax return if you give more than $19,000 per year of cash or property to any recipient as of tax year 2025. If you're married, each spouse is allowed to gift $19,000 per recipient. In other words, gifting $38,000 combined to any one individual is allowed.
There is no limit to how many individuals you can gift, but bear in mind that the $19,000 limit applies to each person to whom you give stock. Any value given over that amount counts against what's called your lifetime gift exclusion, which is $13.99 million per person for tax year 2025. As long as your excess gifts above $19,000 per year don't exceed $13.99 million in your lifetime, you don't have to worry about owing gift taxes.
Generally, there's no tax deduction for gifting cash or stock to individuals, like there is when donating to charity.
