Should I donate stock or sell it and donate cash?

Donate the stock: §170 deducts the fair market value and the appreciation escapes tax forever. Sell first and the gain is taxed before the charity sees a dollar — the same gift costs you more.

What proof does the IRS require?

A bank record or receipt for every gift; a contemporaneous written acknowledgment for $250-plus; a qualified appraisal for property over $5,000 (art, real estate). No acknowledgment, no deduction — courts enforce this strictly.

Can I deduct volunteer time?

No — the value of services is never deductible. Mileage driven for the charity deducts at the statutory charitable rate, and unreimbursed supplies do too. Time is priceless and nondeductible.

IRC §170 · 26 U.S.C. §170

IRC §170: Charitable Contributions Deduction

By Paul D. Diaz, EA, MBA · Updated September 20, 2026

IRC §170 deducts gifts to qualifying charities — 60% of AGI for cash to public charities (now permanent), 30% for appreciated property, with receipts and appraisals policing every tier.

What it governs

60% of AGI limit for cash gifts to public charities — permanent under OBBBA
30% limit for appreciated capital-gain property (with the gain itself never taxed)
Substantiation ladder: receipt, written acknowledgment over $250, appraisal over $5,000
Five-year carryforward for contributions that exceed the year’s limits

In the GuideFull treatment in Chapter 3 of the Guide (principal treatment) and Chapter 24 — THE TAX CUTTERY® Guide to Federal Income Taxation, Professional Edition (564 pages, 24 chapters).

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Questions this section answers

Should I donate stock or sell it and donate cash?: Donate the stock: §170 deducts the fair market value and the appreciation escapes tax forever. Sell first and the gain is taxed before the charity sees a dollar — the same gift costs you more.
What proof does the IRS require?: A bank record or receipt for every gift; a contemporaneous written acknowledgment for $250-plus; a qualified appraisal for property over $5,000 (art, real estate). No acknowledgment, no deduction — courts enforce this strictly.
Can I deduct volunteer time?: No — the value of services is never deductible. Mileage driven for the charity deducts at the statutory charitable rate, and unreimbursed supplies do too. Time is priceless and nondeductible.

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