With the stock market sitting near record highs, many investors are holding investments that have grown significantly in value over the years. If you plan to give to charity, 2025 is a uniquely powerful year to donate those appreciated stocks, exchange-traded funds, and mutual fund shares directly instead of giving cash.

When you donate investments in-kind—meaning you transfer the shares instead of selling them—you can avoid paying capital gains tax on the growth and still deduct the full market value if you have held the investment for more than one year. This allows more of your money to go to the mission you care about, rather than to taxes.

There are two timing factors that make 2025 especially attractive. First, the State and Local Tax deduction limit rises to forty thousand dollars for most taxpayers, which means many more people will itemize their deductions again. When you itemize, charitable gifts can reduce your taxable income. Second, a new rule coming the following year will limit how much of your charitable giving counts toward a tax deduction. That rule does not apply yet in 2025, making this the ideal time to “bunch” or group several years of giving into one.

To take advantage of this, choose investments you have held for more than a year and contact the charity to confirm that it has a brokerage account that can accept transfers. The shares must be transferred directly—do not sell them first.

This simple move can help you support organizations you care about while making the most of a rare tax window.