Giving appreciated stock and bunching gifts: a guide for Christian families

Many families hold stock that has grown a lot. When they want to give, they often sell the stock, pay tax on the gain, and give what is left. A second path is to give the shares themselves. A third idea, bunching, helps when your yearly gifts do not clear the standard deduction. This guide explains both ideas, what the IRS publications say, and the 2026 rules. It is general education, not advice for your return.

What does it mean to give appreciated stock?

Giving appreciated stock means you donate shares that are worth more than you paid, instead of selling them and giving cash. The charity or fund receives the shares. You do not sell them, so you do not report a sale.

The IRS calls this kind of property capital gain property. Pub. 526 says, “Property is capital gain property if you would have recognized long-term capital gain had you sold it at FMV on the date of the contribution.” It adds, “Capital gain property includes capital assets held more than 1 year.” Stocks are on the IRS’s list of capital assets.

In many cases your deduction is the fair market value of the shares. Pub. 561 says, “FMV is the price that property would sell for on the open market.” For stock traded on an exchange, ask your CPA how to measure that price on the date of the gift.

The idea works because two things happen at once. You give a larger asset than the cash you would have netted from a sale, and the gain is never part of a sale on your return. Our glossary entry on donating appreciated stock gives the short definition.

How is a stock gift different from a cash gift?

A stock gift moves shares to the charity. A cash gift moves dollars. The IRS limits and the tax effect differ, so choose based on your facts.

Pub. 526 says the 60% limit “doesn’t apply to noncash charitable contributions.” It also says, “A 30% limit applies to noncash contributions of capital gain property if you figure your deduction using FMV without reduction for appreciation.”

If a gift goes over the limit, you may have time. Pub. 526 says that, except for qualified conservation contributions, “you may be able to deduct the excess in each of the next 5 years until it is used up.”

For example: Say you own shares worth $50,000 that you bought for $20,000, and you have held them for more than a year. You could sell them, report a $30,000 gain, and give what is left after tax. Or you could give the shares. The charity receives the full $50,000 value, and you report no sale. Your CPA decides how the deduction works on your return. These are round numbers for illustration only.

Which assets work best, and which need more care?

Publicly traded stock held more than a year is the simplest case. Other assets need more care. Shares worth less than you paid, shares you got recently, and shares in a private company all raise extra questions.

Use this table as a starting point for a talk with your CPA.

For stock that is not publicly traded, valuation becomes important. Pub. 561 says that, generally, a claimed deduction of more than $5,000 for donated property calls for a qualified appraisal, with exceptions. Ask your CPA about the rules before you give shares in a private company.

How do I give stock step by step?

You contact the charity or fund, get its transfer instructions, ask your broker to move the shares, and keep the records. Do not sell the shares first.

1. Check eligibility. Confirm the church, ministry or sponsor accepts stock gifts. Many do, but each has its own process.
2. Get the transfer details. The receiving organization gives you its brokerage account details and a contact.
3. Start the transfer with your broker. Name the shares and the number of shares. Ask how long the transfer takes.
4. Watch the calendar. Transfers can be slow near year end. Start early.
5. Get the acknowledgment. Keep the written receipt for your tax records.
6. Record the date and value. Your CPA needs the date of the gift and the fair market value.
7. Report it. Your CPA will complete the right forms for noncash gifts.

Do not sell the shares and then give the cash. The sale is a taxable event, and the gift would then be cash.

If you want to give to a church, tell the church first. Some small churches do not have a brokerage account. In that case, a donor-advised fund can receive the shares and then send a grant. Read our donor-advised funds guide for how that works.

What is bunching charitable deductions?

Bunching means putting two or more years of gifts into one tax year. The goal is to itemize in the big-gift year and take the standard deduction in the other years.

The IRS says, “Generally, to deduct a charitable contribution, you must itemize deductions on Schedule A (Form 1040).” So a gift only helps your federal tax if your itemized deductions beat the standard deduction.

For 2026, the IRS lists the standard deduction at $32,200 for married couples filing jointly and $16,100 for single filers. If your mortgage interest, state taxes and gifts add up to less than that, your gifts give you no extra federal tax benefit in that year.

Our glossary has a short entry for bunching charitable deductions.

For example: A married couple has $22,000 in other itemized deductions and gives $10,000 a year. Their total is $32,000, which is just under the 2026 standard deduction of $32,200. They take the standard deduction in both years, so the $64,400 two-year total is the same with or without their gifts. Now suppose they give $20,000 in the first year, two years of giving in one gift, and nothing in the second. In year one their itemized total is $42,000, and in year two they take the standard deduction of $32,200. The two-year total is $74,200, or $9,800 more in deductions. These numbers are round and ignore the 0.5% floor, state rules and AGI limits.

A donor-advised fund helps here. You make the large gift to the fund in the big year, then send grants to churches and ministries over the next two or three years. Your church receives steady support, and you get the deduction in one year.

How do the 2026 rules change bunching?

Two 2026 rules matter. Itemizers can deduct only gifts above 0.5% of AGI, and people who take the standard deduction may claim a limited deduction for cash gifts. Both change the math.

The IRS says, “Beginning in 2026, if you itemize, you can only deduct charitable contributions that are more than 0.5% of your adjusted gross income.” Pub. 505 adds that the amount under the floor “can’t be deducted in 2026.”

For example: If your AGI is $400,000, the floor is $2,000. Your first $2,000 of giving does not help your itemized total. That small hurdle applies each year you itemize. Bunching means you pay that cost once instead of twice. These are round numbers for illustration.

For people who do not itemize, the IRS also says: “Beginning in 2026, you can claim a deduction for cash contributions made to eligible tax-exempt organizations.” The maximum is $1,000, or $2,000 for married couples filing jointly, with other limits. That rule covers cash gifts, so ask your CPA how it applies if you plan to give stock in a standard deduction year.

A new rule can also change how you plan your off years. In a standard deduction year, you may still give cash directly to your church and claim the limited deduction, if you meet the rules. Your CPA can build a two-year or three-year plan.

What are the risks and trade-offs?

The main risks are giving too much too soon, losing flexibility, and missing a limit. A large gift cannot be taken back, and a deduction can be limited by your AGI.

Think about these points before you act:

• You cannot reverse the gift. Once the charity or sponsor owns the shares, they are no longer yours.
• Do not let the tax tail wag the dog. Give because you want to support the work. The tax result is a benefit, not the reason.
• Watch the limits. The 30% limit can cap a large stock gift. Carryovers help, but they are not unlimited.
• Keep other plans in mind. If you plan to leave the stock to heirs, a different rule may apply. Our glossary entry on step-up in basis explains the idea. Ask your attorney and CPA to compare the two paths.
• Check your portfolio. Giving shares changes what you hold. A planner can show how it affects your mix of investments.
• Pace the grants. Money in a donor-advised fund does not reach a ministry until you grant it.

Gifts to a private foundation follow other rules. Pub. 526 says the reduced deduction for certain gifts to private nonoperating foundations “doesn’t apply to contributions of qualified appreciated stock.” That is a narrow rule with extra conditions, so ask your attorney. See donor-advised fund vs private foundation for a plain comparison.

How does this fit a Christian giving plan?

Stock gifts and bunching are tools. They do not replace the heart of giving. Use them to give more thoughtfully, not to give less.

Scripture speaks to the posture. Luke 12:48 says, “To whom much is given, much is required.” 2 Corinthians 9:7 teaches cheerful, planned giving. Proverbs 3:9 speaks of honoring the Lord with your wealth. Our guide on tithing and biblical generosity goes deeper on regular giving.

A plan can use more than one asset. You might tithe from income each month, give appreciated stock once a year, and use a qualified charitable distribution after 70½. Each tool has its own rules.

For more on the stock question, read our post on whether to gift appreciated stock or sell first. For the year-end tax view of employer shares, see our RSU year-end checklist.

Seek First’s Impact Planning service is the firm’s giving strategy work. The team looks at giving next to your taxes, investments and estate plan.

Next step

To see how appreciated stock and bunching fit your plan, read our charitable giving strategy page. Then schedule a free call, a 20-minute complimentary consultation, or call (866) 398-4044.