Donating Highly Appreciated Stock
Donating highly appreciated stock instead of cash to a charity can greatly benefit both parties. The charity receives a valuable asset it can either maintain or sell. The taxpayer receives a charitable deduction for the fair market value of the security and avoids paying capital gains tax on the appreciation.

Donor-Advised Funds
Donors intent on using this year’s charitable tax benefits should consider donor-advised funds. “Donor-advised funds”, operated either by investment firms such as Fidelity Investments or Vanguard Group or by national or local charities (often foundations), offer many givers the ability to make large contributions before year-end and get a full deduction, while allowing them to postpone decisions about recipients. In donor advised funds, the original gift then grows tax-free until the donor decides which nonprofits should receive all or pat of it, at which point there’s no deduction.