How to Donate Stock, IRA, or 401k to Charity

Contact the nonprofit to verify they can receive securities. Most established 501(c)(3) organizations accept stock donations, but some smaller charities may not have the infrastructure.

Request the charity's brokerage information:

• Brokerage firm name
• DTC (Depository Trust Company) number
• Account name
• Account number
• EIN (Employer Identification Number)

Work with your brokerage or financial advisor to identify the most tax-efficient shares. Generally, donate securities with:

• The largest unrealized gains (highest appreciation from your purchase price)
• Holding period greater than one year (to qualify for fair market value deduction)

If you've purchased the same stock at different times and prices, you can specify which shares to donate. This is called "specific identification."

Contact your brokerage to begin the transfer. Most brokerages offer multiple methods:

• Online transfer: Many brokerages (Fidelity, Schwab, Vanguard, E-Trade) allow you to initiate charitable transfers through their website.
• Transfer form: Download your brokerage's stock transfer form or letter of instruction.
• Phone: Call your brokerage's customer service line and request a charitable stock transfer.

Alert the charity that a stock gift is incoming. Provide:

• Your name and contact information
• Stock name and ticker symbol
• Number of shares
• Approximate transfer date

Critical: Brokerage transfers often arrive anonymously. Without advance notice, the charity may not know who sent the gift.

After the charity receives and sells the shares, they should send you a written acknowledgment stating:

• Date the securities were received
• Description of the gift (stock name, number of shares)
• Statement that no goods or services were provided in exchange

Mutual fund shares held more than one year can be donated just like individual stocks. The value is based on the Net Asset Value (NAV) on the date of transfer.

ETFs trade like stocks, so the donation process is identical to individual stock transfers. Fair market value is based on the average of high and low prices on the transfer date.

Cryptocurrency is classified as property, not currency. Donations follow the same rules as other non-cash property.

Yes, but your deduction is limited to your cost basis (what you paid), not fair market value. You won't benefit from the appreciation. For short-term holdings, it's usually better to sell, recognize the short-term gain, and donate cash.

Many charities work with third-party platforms (like DonateStock, FreeWill, or The Giving Block) that provide brokerage services. The charity receives cash after the platform sells the donated securities.

For publicly traded securities, fair market value is the average of the high and low trading prices on the date of donation. Your brokerage statement or financial websites can provide this data.

No. Transferring stock out of an IRA triggers a taxable distribution. If you want to use IRA assets charitably, make a Qualified Charitable Distribution of cash.

A QCD transfers funds during your lifetime and reduces your current-year taxable income. Naming a charity as beneficiary transfers funds at death; there is no lifetime tax benefit, but the charity receives the full amount tax-free.

Not for publicly traded securities, regardless of amount. But for cryptocurrency, privately held stock, real estate, and other non-publicly traded assets valued over $5,000, a qualified appraisal is required.

Yes. Each spouse can make QCDs up to $108,000 annually from their own IRA, for a combined maximum of $216,000 per year.

Carryforward amounts from prior years remain subject to the new 0.5% AGI floor starting in 2026. Consider accelerating use of carryforward deductions in 2025 if possible.