About the Donate Stock vs Cash Calculator
This calculator compares two ways to support a charity or donor-advised fund (DAF) with shares that have gone up in value: donating the stock directly, or selling it first and donating the after-tax cash. Enter the market value and your cost basis, how long you have held the shares, your tax rates and AGI, and it shows how much the charity receives and how much tax you save under each approach.
When you donate long-term appreciated stock (held more than one year) to a public charity, you generally deduct its full fair market value and never pay capital gains tax on the appreciation. If you sell first, you owe capital gains tax (plus the 3.8% net investment income tax and state tax, if they apply) and can only give what is left. Stock held one year or less is treated differently: the deduction is limited to your cost basis.
The calculator applies the IRS percentage limits — 30% of AGI for appreciated stock given to public charities and 60% for cash — and shows any excess you can carry forward for five years. For non-itemizers it applies the new 2026 deduction of up to $1,000 ($2,000 joint) for cash gifts, which does not cover stock or gifts to donor-advised funds. It assumes the gift goes to a public charity or DAF, values the deduction at your federal marginal rate plus your state rate, and does not model the 0.5%-of-AGI floor on itemized charitable gifts or the 35% cap on the deduction’s value for top-bracket filers that start in 2026; both shrink the deduction similarly under either option.
With the default inputs, the advantage of donating stock is $13,042.40. Change any value above to recalculate instantly.
How to use the donate stock vs cash calculator
- 1Enter the current value of the shares and what you paid for them.
- 2Say whether you have held them more than a year and whether you itemize.
- 3Enter your AGI, federal marginal rate and capital gains rate.
- 4Tick NIIT if your income is above the threshold and add your state rate.
- 5Compare what the charity receives and what you save under each option.
Formula and method
Selling first creates a capital gain of market value minus basis, taxed at your long-term rate (or ordinary rate if held a year or less) plus the 3.8% NIIT and state tax when they apply. The remaining cash is donated and is deductible up to 60% of AGI if you itemize, or up to $1,000/$2,000 if you don’t (from 2026). Donating long-term shares directly gives a deduction equal to full market value, limited to 30% of AGI for public charities and DAFs, with the excess carried forward five years; short-term shares are deductible only at basis, up to 50% of AGI.
The advantage of donating stock is the extra amount the charity receives (the capital gains tax that is never paid) plus the difference in tax savings between the two deductions. Deductions are valued at your federal marginal rate plus your state rate, assuming your state allows the charitable deduction.
- FMV
- Fair market value of the shares on the date of the gift
- t_cg
- Long-term capital gains rate (0%, 15% or 20%)
- t_ord
- Federal marginal ordinary income tax rate
- NIIT
- 3.8% net investment income tax, if applicable
Worked examples
$50,000 of stock bought for $10,000
Selling triggers a $40,000 gain taxed at 15% + 3.8% + 5% = 23.8%, or $9,520, leaving $40,480 to donate, which saves $14,978 at a 37% combined rate. Donating the shares gives the charity the full $50,000 and a $50,000 deduction worth $18,500. Together that is $13,042 more value: $9,520 extra to the charity plus $3,522 more tax saved.
Large gift hits the 30% AGI limit
Donating $100,000 of stock is limited to 30% of $200,000 AGI this year — a $60,000 deduction worth $14,400 — with $40,000 carried forward. Selling first costs $12,000 in tax and the $88,000 cash gift is fully deductible this year (worth $21,120), but the carryover lets the stock gift catch up in later years.
Standard deduction taker
Without itemizing, donating stock gives no deduction, but it still avoids $2,250 of capital gains tax (15% of the $15,000 gain). Selling and giving the cash qualifies for the $1,000 non-itemizer deduction, worth $220. Donating the stock is still $2,030 better overall.
Frequently asked questions
Is it better to donate stock or cash?+
For shares held more than a year that have risen in value, donating the stock is usually better: you deduct full market value and avoid capital gains tax, so the charity gets more for the same cost to you. For shares at a loss, sell first and donate the cash so you can deduct the loss.
How much can I deduct when I donate appreciated stock?+
Long-term appreciated stock given to a public charity or donor-advised fund is deductible at fair market value up to 30% of AGI. Any excess carries forward for five years. Cash gifts to public charities are deductible up to 60% of AGI.
What if I held the stock less than a year?+
Stock held one year or less is ordinary income property, so your deduction is limited to the lesser of cost basis or market value. You still avoid tax on the short-term gain, but the deduction is much smaller than for long-term shares.
Can I donate stock to a donor-advised fund?+
Yes. DAFs are public charities, so gifts of long-term appreciated stock get the fair market value deduction up to 30% of AGI, and you can recommend grants to individual charities over time. Many brokerages transfer shares to their DAF in a few days.
Do non-itemizers get a deduction for donating stock?+
No. Starting in 2026, people who take the standard deduction can deduct up to $1,000 ($2,000 joint) of cash gifts to qualifying charities, but noncash gifts such as stock — and any gift to a donor-advised fund — do not qualify. Donating stock still avoids the capital gains tax.
What records do I need for a stock donation?+
Keep a written acknowledgment from the charity for any gift of $250 or more and report noncash gifts over $500 on Form 8283. Publicly traded securities do not require a qualified appraisal, but closely held stock over $10,000 does.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.