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What if there was a way for your donors to make a bigger impact on your ministry without it costing them more out of pocket? It turns out, there is! Here’s the best-kept secret in church giving: donating stocks.

This isn’t a complicated tax hack or something that only financial experts understand. Donating stock to charity is a straightforward and incredibly effective way for your members to give more generously while also reaping practical benefits like avoiding capital gains taxes, simplifying their financial planning, and rebalancing their investment portfolios.

Since most churches don’t talk about donating stocks, mutual funds, ETFs, bonds, and cryptocurrencies, it means they’re missing out on a huge opportunity. In this post, we're sharing the top five benefits for your church and your generous donors.

Quick disclaimer: Before we dive into all of the benefits, this article is for informational purposes only and is not intended to be tax or financial advice. Please consult your financial or tax professional for advice specific to your individual situation. 

The 5 big benefits of donating stock to charity

Gifts of publicly traded stock can be a smart way to grow generosity in your church. Here are the top benefits for both your church and your donors.

1. Give larger donations

People who donate stocks to charity tend to give a lot more than other donors. While most cash or online donations tend to be smaller gifts around $200, stock donations can average up to 150 times larger than cash gifts.

Donating appreciated stock is one of the easiest ways for donors to give more without spending more. If they sold the stock first, they'd owe a 15% or 20% federal capital gains tax on the growth, plus a 3.8% surtax for higher earners. By contributing the stock directly, they avoid those taxes entirely. Your church receives the full value of the stock, and donors save money in the process.

For example, if someone bought $1,000 worth of stock that’s now worth $5,000, donating the stock instead of selling it avoids paying taxes on the $4,000 gain while still allowing the donor to deduct the full $5,000 as a charitable contribution. It’s a win-win.

Churches automatically count as qualified organizations under IRS rules, so these gifts are tax-deductible. To claim the deduction, donors itemize on Schedule A (Form 1040). For noncash gifts over $500, they also file Form 8283. Your church's receipt should list the company and number of shares but shouldn't assign a dollar value.

While the paperwork might sound intimidating, the tax savings and the ability to make a bigger impact can be well worth it.

Note: If a church member receives any benefits in return for their donation—like a ticket to an event—they can only deduct the portion that exceeds the value of that benefit. 

2. Avoid capital gains taxes

As we’ve already alluded to earlier in this article, donating stock can be a strategic move for your savvy donors. That's because by giving stock instead of selling it, they can skip capital gains taxes on stocks sold, which can be up to 20% of the gains they’d otherwise owe. This makes it a cost-effective way to give while maximizing the impact of their gift.

For example, if a donor owns $10,000 worth of stock they originally purchased for $4,000, selling it would mean paying taxes on the $6,000 gain. Donating appreciated stock to charity avoids those taxes entirely. So, the full $10,000 goes to supporting your church's mission.

Here’s what donors need to know to make the most of this option:

• Hold the stock for more than one year. To deduct the full market value of the stock, donors must have owned the shares for more than a year. If they’ve held it for a shorter period, their deduction is limited to what they originally paid.
  
  
• Know your deduction limits: The IRS caps the deductible amount for stock donations at 30% of a donor’s adjusted gross income (AGI). If their gift exceeds that limit, they can roll the excess into future tax returns for up to five years.
  
  
• Valuing the gift fairly. The fair market value is based on the average of the stock's high and low prices on the day it's donated. For stock held less than a year, the deduction is limited to the original purchase price.
  
  
• Public vs. private stock. Publicly traded stocks, mutual funds, and ETFs are the easiest to give. Privately held stock is possible, but it requires extra steps, including a qualified appraisal for gifts over $10,000. Not every church can accept it.
  
  
• Timing matters. To qualify for a deduction this year, shares must arrive in your church's account by December 31. Start early, because brokers get backed up in December.

Helping your congregation understand how stock donations work empowers them to give more effectively while keeping more of their resources. It’s generosity that goes further for your church and its mission. 

What's new for 2026

‍Starting this year, itemizers can only deduct the portion of their charitable gifts that exceeds 0.5% of their AGI. Donors in the top 37% bracket also see the tax benefit of their deduction capped at 35%. The new deduction for non-itemizers ($1,000, or $2,000 for joint filers) applies only to cash gifts, not stock. For many donors, larger gifts of stock in a single year make even more sense under these rules.

When your congregation understands how stock donations work, they can give more effectively and keep more of their resources.

3. Reset the cost basis & lower future tax burden  

When someone donates stock, they essentially “reset” the cost basis on their investment. In plain terms, this means when they reinvest in a similar stock, their new tax baseline is the current market value. Down the road, this can reduce how much they’ll owe in capital gains taxes when they sell. It’s a win for your church now and for their wallet later.

This strategy works especially well in higher-income years or during big life changes. For example, if someone sold a property, cashed out part of a business, or is nearing retirement and receiving deferred compensation, donating stock can help offset the taxes from that extra taxable income. It’s about being generous while also being smart with their money.

Here’s what to keep in mind:

• Donating during a high-income year gives donors the biggest tax break since it offsets those larger tax bills.
• By resetting the cost basis, future tax liability on similar investments can be lower when they eventually sell.

4. Balance your investment portfolio

Over time, certain investments can grow faster than others, throwing off the balance of your portfolio. By donating appreciated stock, donors can trim down overperforming assets and realign their portfolios with their financial goals. All while making a meaningful contribution to your church.

It’s like getting an annual physical. Just like regular checkups help people stay healthy and catch potential issues early, a yearly financial health check is just as important. This gives donors a chance to optimize their investments, reduce risk, and ensure their portfolio aligns with their long-term goals.

Pro Tip for donors: If your stock has increased in value, donating it directly is the smarter choice because you don’t have to pay capital gains taxes. But if your stock has lost value, you might be better off selling it first to take the tax loss, then donating the cash proceeds. Either way, you’re helping your church while improving your financial standing.

Encouraging your congregation to think about their financial health—just like they would their physical health—makes donating stock a win-win. It supports your ministry while helping them stay on track for their future. 

5. Simplify the donation process with Subsplash Giving 

Making it easy for donors to support your mission is key, and that’s where Subsplash Giving shines. It’s designed to remove every possible barrier so your church can accept donations more easily. Whether through your app, on your website, watching a live stream, or even texting a donation, Subsplash makes it simple for people to act on their generosity in the moment.

With options like Apple Pay, Google Pay, instant ACH verification, and now our stock and crypto donation tool in partnership with Engiven, donations can be completed in seconds. No fumbling with credit cards or waiting for checks to clear—just a fast, hassle-free way for donors to support your ministry wherever they are.

Subsplash helps you meet your donors where they’re already spending their time. See why giving has never been easier. [.blog-contact-cta]Book a no-obligation demo today! [.blog-contact-cta]