For tech employees holding long-term RSU shares, Edward Jones Investments takes on the work of donating appreciated stock, so the charity gets the full value of the shares and nobody pays capital gains tax on the growth. The decision this service settles is which lots to give and which to sell. Lots held over a year with the biggest gain go to charity, and lots worth less than their vest price get sold so you keep the capital loss. Raj and Lan, a hypothetical couple in their 30s and 40s, show how it works below, with cash checks going out every year and a house purchase 3 years away.
What does donating appreciated stock mean when your shares came from RSUs?
Donating appreciated stock means you transfer the shares themselves to a charity or donor-advised fund, and the charity sells them. Neither you nor the charity pays capital gains tax on the rise above the vest-date value. Raj and Lan were writing cash checks to their kids' school foundation when they asked why they weren't giving shares instead.
For RSUs, your basis is what a share was worth the day it vested, since that amount already showed up on your W-2 as wages. Only growth after vesting is the gain you avoid, and a lot has to be held more than 1 year after vesting to count as long-term. If you itemize, you can usually deduct the full market value of a long-term lot given to a public charity or a donor-advised fund, up to 30% of AGI (adjusted gross income). A lot held 1 year or less is limited to its basis.
Here's the quick test for when it starts to matter: you already give $1,000 or more a year in cash and own a long-term lot worth at least twice what it cost. That bar sits well below six figures, which is why Raj and Lan, with a modest lot, qualified.
Who signs, who transfers and who files Form 8283: the client, Edward Jones Investments or the CPA?
You approve the lot and sign the transfer letter, Edward Jones Investments ranks the lots, the custodian moves the shares, and your CPA values the gift and files Form 8283 when noncash gifts top $500. Listed stock needs no qualified appraisal. The attorney handles the will.
Edward Jones Investments sorts the lots by how much gain each dollar of gift carries, marks any lot trading below its vest price, and checks the gift against the down payment schedule before Raj and Lan sign anything. The custodian uses the charity's brokerage instructions, and small charities often can't take shares directly, so the gift may go through a donor-advised fund first (check the sponsor's minimum). The CPA records the value as the average of the day's high and low on the gift date. Look at the When column: the transfer has to start by early December.
| Task | Who does it | When |
|---|---|---|
| Rank lots, flag loss lots | Edward Jones Investments | Early November |
| Confirm charity takes shares | You, with the charity | Early November |
| Sign transfer letter | You | By early December |
| Move shares to charity | Custodian | 1 to 2 weeks |
| Value gift, file Form 8283 | CPA | At tax filing |
| Name fund successor in will | Attorney | Next will update |
Which years make a stock gift worth doing now?
The best years to give are the ones when you're already selling company stock to diversify, since every lot donated is a lot you don't sell and pay tax on. A year with an unusually large RSU vest is another.
If the extra income pushes you into itemizing, pairing 2 or 3 years of planned gifts into a donor-advised fund can lift the deduction above the $32,200 standard deduction for married couples filing jointly (tax year 2026). The trade-off is plain: money in a donor-advised fund is gone for good, so Raj and Lan's $400,000 house fund for year 3 is never the source of a bunched gift. Timing matters at lot level too. A lot that just crossed the 1-year mark after vesting is a fresh candidate, while one still at 8 months should wait, because its deduction would be limited to basis.
Keep the gift in step with the down payment, the tax return and the will
A gift deduction above the 30% AGI limit carries forward for up to 5 years. The CPA tracks that carryforward, and Edward Jones Investments keeps each gift inside the year's estimated-tax figures. Giving shares doesn't touch your W-2 wages, so your earnings record and future Social Security benefit stay the same, and at ages 41 and 39 claiming age isn't part of this decision.
The spending plan sets how much company stock can still be exposed with a house purchase 3 years out. Each donated lot lowers that exposure without a sale, and the cash Raj and Lan would have given goes into the house fund instead. With 2 children under 8, the attorney adds the donor-advised fund's successor to the same will update that names a guardian. One risk to keep in view: the company stock you keep can still fall, and you can lose money you put in.
Print the lot-by-lot basis report before the first stock-gift meeting
Bring 3 items: the custodian's unrealized gain and loss report by lot (not the summary page), a list of the charities you gave to last year with amounts, and last year's return to see whether you itemized. In the meeting, Edward Jones Investments marks which lots to give, which to sell for a loss and which to hold, and checks whether each charity can receive shares or needs a donor-advised fund in between. The fee is talked through openly in that first conversation and confirmed in writing before any shares move. You leave with a short list of lots ranked for giving, a transfer date set before the year-end rush, and a note for your CPA on the Form 8283 entries to expect.
What people ask about donating appreciated stock
Can we deduct a stock gift if we take the standard deduction?
No, not as an itemized deduction. If you take the standard deduction ($32,200 for married couples filing jointly in tax year 2026), a stock gift adds no deduction. You still avoid capital gains tax on the lot, because neither you nor the charity sells it. Bunching 2 or 3 years of gifts into a donor-advised fund can push you past the standard deduction.
My employer matches charitable donations. Will it match a gift of company shares?
Maybe, but check before you transfer anything. Many employer matching programs accept cash or card gifts only, and some exclude stock, especially the company's own shares. Ask your HR benefits team for the written matching policy. If stock isn't matched, the match may be worth more than the tax saved, so compare both.
By what date do shares have to reach the charity to count for this tax year?
The shares must reach the charity's account by December 31 to count for that tax year, and transfers can take 1 to 2 weeks, longer near year end. Start the transfer letter by early December. A gift started on December 28 can slip into the next year, and the deduction slips with it.
Should we give RSU shares that vested 8 months ago or wait?
Wait, unless the lot is worth less than its vest price. A lot held 1 year or less is generally deductible only at its basis, not its full value, and the gain avoided isn't long-term. Once it passes 1 year after vesting, it becomes a strong candidate. A lot below its vest price should be sold for the loss.
Can I give shares to a small school foundation that has no brokerage account?
Yes, in most cases. A donor-advised fund accepts listed shares, sells them, and lets you recommend grants to charities over time. That helps when a small charity can't receive shares directly. Check the sponsor's minimum. Once the shares are in the fund, the money can't come back to you.
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This material is general information only and does not address any individual's investment, tax or legal situation. Investing involves risk, including possible loss of principal. Before acting on any information here, speak with a financial advisor, tax professional or attorney about your circumstances.