When it comes to charitable giving, individuals often seek ways to make a meaningful impact while also optimizing their tax benefits. One often overlooked yet tax-smart strategy is gifting appreciated shares of stocks or other securities to qualified charitable organizations. This approach allows donors to support causes they care about while potentially reducing their tax liabilities. However, it’s essential to understand the rules and limitations, especially when dealing with mutual funds and ETFs. Gifting appreciated shares involves donating securities that have increased in value since their initial purchase. Instead of selling the shares and donating the cash, donors transfer the securities directly to a qualified charitable organization. By doing so, they avoid incurring capital gains taxes on the appreciation while still receiving a tax deduction for the full current value of the gifted shares. The primary advantage of gifting appreciated shares lies in the potential tax savings. When donors sell appreciated securities themselves, they are subject to capital gains tax on the difference between the purchase price (cost basis) and the current value. Depending on their tax bracket and the holding period, this tax can