Picking the Right Assets to Donate to Charity

Why the Asset You Donate Matters

When most people think about charitable giving, they think about writing a check or making an online donation with a credit card. While cash donations remain an important way to support nonprofits, they aren’t always the most effective option.

Many donors today hold a portion of their wealth in appreciated assets like publicly traded stock and cryptocurrency. If those assets have increased in value, donating them directly to a qualified nonprofit may help maximize your charitable impact while offering potential tax advantages, depending on your individual circumstances.

Choosing the right asset to donate can benefit both you and the organization you’re supporting.

1. Selling First Can Reduce the Size of Your Gift

Most nonprofits accept several forms of charitable donations. While “give what you can” is always good advice, you may unintentionally reduce the size of your gift by selling an appreciated asset before donating the proceeds.

For example, imagine you’ve owned stock or cryptocurrency that has increased significantly in value.

If you sell the asset first, you may owe capital gains taxes on the appreciation, depending on your individual circumstances. That means a portion of your investment’s value could go toward taxes instead of supporting the nonprofit you care about.

For many eligible donors, donating appreciated assets directly to a qualified charitable organization may help avoid triggering a taxable sale while allowing more of the asset’s value to support the cause.

2. Appreciated Assets May Offer Valuable Tax Advantages

One reason many financial advisors encourage clients to donate appreciated investments is because of the potential tax benefits.

The IRS generally treats cryptocurrency as property, similar to publicly traded stock. Depending on your circumstances, donating appreciated stock or cryptocurrency directly to a qualified nonprofit may allow eligible donors to avoid capital gains taxes while potentially claiming a charitable deduction, subject to IRS rules and applicable tax laws.

Every donor’s financial situation is different, so it’s important to consult a qualified tax or financial advisor before making charitable giving decisions.

3. Giving Stock and Crypto Is Easier Than Ever

Donating stock or cryptocurrency used to involve paperwork, phone calls, and lengthy processing times.

Today, thousands of nonprofits accept stock and cryptocurrency online through platforms like The Giving Block, making it easier than ever for donors to support the causes they care about.

This shift reflects a broader change in philanthropy. In 2025, The Giving Block processed more than $100 million in cryptocurrency donations, bringing the total processed through the platform to more than $300 million since 2018. The report also found that the average crypto donation exceeded $11,000, demonstrating that digital assets have become an increasingly important source of major gifts for nonprofits.

Whether you’re supporting education, healthcare, disaster relief, animal welfare, faith-based organizations, or your local community, donating appreciated assets has never been more accessible.

Bottom Line: Cash Isn’t Always King

Cash will always have an important place in charitable giving—but it isn’t always the most effective asset to donate.

For many donors, appreciated stock and cryptocurrency offer an opportunity to maximize both charitable impact and potential tax efficiency. By choosing the right asset—not just the right cause—you may be able to help your generosity go even further.

Before making charitable giving decisions, consult a qualified tax or financial advisor to determine the approach that’s right for your situation.

Ready to Make a Bigger Impact?

Learn how donating appreciated assets can help support the causes you care about.