This is the time of year when many of us are thinking about how much we've donated this year, and if we should do just a little more giving. If you have appreciated stock, it could make sense to make a stock donation between now and the end of the year. If you want the donation to be completed in 2011, you'll need to start soon!
Donating stock is a great way to support the groups you care about and you get the added benefit of bigger tax breaks. When donating stock, you're not subject to capital gains tax as you would be if you'd sold the stock after it increased in value. The tax deduction you receive by giving appreciated assets is often more advantageous than what you normally get with cash gifts to non-profit organizations.
Donating stock is easy. Simply confirm that the group you want to support can accept stock gifts. Then identify the shares you'd like to donate and ask your broker to transfer them to the group or groups you designate.
It takes some time for the transaction to be completed, but it doesn't take more time and effort on your part.