By Harry Prabandham · Updated September 28, 2026
Estate & Legacy
Donating Real Estate, Private Stock, and Art to Charity
Donating appreciated long-term assets can avoid capital gains tax and allow a fair market value deduction, but appraisal, acceptance, and AGI limits apply.
Donating Real Estate, Private Stock, and Art to Charity
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Why donate non-cash assets instead of cash?
- Giving long-term appreciated property directly to a public charity generally avoids capital gains tax on the built-in gain.
- The deduction is generally fair market value for property held more than one year, limited to 30% of AGI for gifts to public charities.
- Property held one year or less is generally deductible only at cost basis.
- Starting in 2026, itemizers lose a deduction for the first 0.5% of AGI in gifts, and top-bracket itemizers' deductions are capped at a 35% benefit.
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Full Guide
Why donate non-cash assets instead of cash?
- Giving long-term appreciated property directly to a public charity generally avoids capital gains tax on the built-in gain.
- The deduction is generally fair market value for property held more than one year, limited to 30% of AGI for gifts to public charities.
- Property held one year or less is generally deductible only at cost basis.
- Starting in 2026, itemizers lose a deduction for the first 0.5% of AGI in gifts, and top-bracket itemizers' deductions are capped at a 35% benefit.
What should you know about donating real estate?
- Many charities decline real estate because of carrying costs, environmental liability, and time to sell.
- A qualified appraisal is required when the deduction exceeds $5,000.
- Mortgaged property can be treated partly as a sale, and fractional-interest gifts face special rules.
How does donating private company stock work?
- Non-publicly traded stock needs a qualified appraisal when the deduction exceeds $10,000.
- If the charity sells under a prearranged, binding agreement, the IRS can treat the donor as the seller and tax the gain.
- S corporation stock creates unrelated business taxable income for the charity, which is why many charities won't accept it.
- Company transfer restrictions and rights of first refusal need to be cleared before the gift.
What rules apply to donating art and collectibles?
- The deduction is fair market value only if the charity's use is related to its exempt purpose; otherwise it is generally limited to basis.
- Items over $5,000 need a qualified appraisal, and an appraisal must be attached when a single art deduction is $20,000 or more.
- The IRS Art Advisory Panel reviews art valuations under examination, and you can request a statement of value for art appraised at $50,000 or more.
Can donor-advised funds or CRTs accept complex assets?
- Some donor-advised fund sponsors accept private stock or real estate; each sponsor sets its own acceptance policy.
- A charitable remainder trust can sell a contributed asset without immediate capital gains tax and pay you an income stream.
- Both vehicles are irrevocable, and the deduction is based on the asset's appraised value and the vehicle's rules.
What documentation does the IRS require?
- Form 8283 is required when total non-cash contributions exceed $500.
- A contemporaneous written acknowledgment from the charity is required for any single contribution of $250 or more.
- Deductions over the AGI limits can generally be carried forward for five years.
Key takeaways
- Complex assets can be efficient to give but require appraisals, charity acceptance, and careful timing.
- Avoid a prearranged sale before the gift, and confirm the charity's use for art.
- 2026 rules add a 0.5% AGI floor and 35% value cap for top-bracket itemizers.
- Rubric coordinates complex gifts with your CPA and attorney; confirm the tax treatment with your tax adviser.
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