There are several benefits to donating stock, whether from a public or private company, instead of cash. When you donate stock that you have held for more than one year, you can qualify for an immediate income tax deduction at the current fair market value of shares held for more than one year.

When you donate long-term appreciated stock, you also avoid paying capital gains taxes on the appreciation. This is especially beneficial if your stock has significantly increased in value, potentially increasing the amount you have available to donate to charities. Since charities are tax-exempt, they receive the full value of your private stock once liquidated because they don’t pay capital gains taxes.

Unlike stock from public companies, private stock is typically illiquid, meaning that it is difficult or prohibitive to sell your shares. But when you donate private stock, the tax savings can help lessen or even eliminate an expense that would have been paid in cash, preserving your cash or other investments. In addition, if the private stock appreciates significantly in the donor-advised fund before it is sold, you can end up with more money tax-free to recommend as donations to charities you support.

The vast majority of charities don’t accept private or publicly traded stock directly. With Daffy, you can contribute these assets easily and once liquid, donate to nearly any charity, school, or religious institution in the U.S., from one place.