In ItsDeductible, a stock donation is a donation of stocks, bonds or mutual funds to a qualified organization. Depending on the value of the stock and the time you donate it, this donation will fall into one of two categories: Ordinary Income Property Donation or Capital Gain Property Donation.
| Stock Type | Description of Stock Type | Time Requirement |
| Ordinary Income Property Donation | Stock that, if you had sold it at fair-market-value at the time you donated it, would have generated ordinary income or short-term capital gain. | You owned the stock for less than a 12-month period. |
| Capital Gain Property Donation | Stock that, if you had sold it at fair-market-value, would have generated a long-term capital gain. | You owned the property for a 12-month period or more. |
Note: There is one instance in which you should consider not donating your stock to a qualified organization. When the fair-market-value of your stock has gone down in value since you originally purchased it, you are generally better off selling the stock at a loss, deducting the loss on your taxes, and then donating the proceeds to the qualified organization.
There are many other potential scenarios for you to consider when making a charitable donation. For more detailed information, refer to IRS Publication 526 on Charitable Contributions.
| IRS Publication 526 |